Americans Promise to be Responsible with their Tax Refunds

The average American taxpayer is getting about $2,700 back as a tax refund. But surprisingly, a Motley Fool survey finds most don't intend to blow it on a new TV or some other high end purchase.

The majority of taxpayers say they'll take the money and pay bills or add to their savings. Houston financial planner Bob Fumagalli says that's good to hear, because Americans have a horrible record when it comes to saving.

"It's dismal and you wonder what's going to happen in future years; people are getting older, people are going into retirement, you can't necessarily rely on Social Security."

Fumagalli says he prefers to see tax refunds come in a large chunk rather than be doled out with a little more money in paychecks each month, because it encourages saving.

"You have to have some discipline and put money away and that's why I like the big refund -- as long as you do the right thing with it."

The Motley Fool survey says only about ten percent of taxpayers in the survey say they'll spend it on a TV or some other big ticket item.

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