Search


Subscribe to AFM


Subscribe to AllFinancialMatters
by Email

All Financial Matters

Promote Your Page Too

The American's Creed

Site Sponsors

Books I Recommend


AFM in the Media


Money Magazine May 2008

Real Simple March 2008

Blogroll (Daily Reads)

« | Main | »

Another Question of the Day – How Will You Spend Your Rebate Check?

By JLP | April 17, 2008

I just received an email from a PR person for Experian with the results of a survey on what Americans plan to do with their tax rebate checks. Among the responses:

19% said they would pay off a debt

16% said they would pay utility bills

15% said they would increase their spending

10% said they would apply the proceeds toward home repairs

7% said they would use it toward travel expenses

4% said they would use to purchase new furniture or appliances

2% said they 19+plan to use toward purchasing a new car

I’m not sure what happened to the other 27% of respondents. I also thought it was funny that 41 percent of consumers “strongly agree” that the economic stimulus package is not enough to help distressed homeowners. Ya don’t say? In order for it to help, the rebate would have to turn into a MASSIVE GIFT!

Our plans for our rebate check:

Save it! We are going to have to use our savings to pay for our $6,700 plumbing problem and will need to replace whatever we use. It stinks because that’s not a fun thing to spend money on!

What about you? What are you going to do with your rebate check?

Topics: Taxes | 36 Comments »


36 Responses to “Another Question of the Day – How Will You Spend Your Rebate Check?”

  1. Yana Says:
    April 17th, 2008 at 7:24 pm

    We’re going to save the rebate check in our “tax fund”, since we pay taxes rather than getting refunds.

  2. Jeremy Says:
    April 17th, 2008 at 7:42 pm

    We’re going to the casino and I’m putting it all on red on the roulette table.

  3. Wilson Says:
    April 17th, 2008 at 9:10 pm

    I’m ineligible and subsidizing the rebate …

  4. GL Says:
    April 17th, 2008 at 9:23 pm

    I think it’s very telling of our country’s economic situation that the option “I’ll put it in my savings account” or “invest” was not mentioned. :) Perhaps that’s what the other 27% of respondents said, but it didn’t go well with the glum&doom scenario that Experian wanted to show.

    And just in case it’s not already evident, I’ll invest my rebate (I’m thinking of putting it in the Berkshire Hathaway (the “B” share) with the rest of my money, since I have savings and no debts. :)

  5. Fred Says:
    April 17th, 2008 at 10:33 pm

    Actually, I think the omission of savings or investment from the PR email reveals more about the sender’s priorities than about our fellow citizens’ lack of fiscal discipline. I mean, is it any surprise that a credit bureau would want to list debt-repayment as the top response?

    Maybe I’m just hanging out at all the “wrong” places, but the vibe I get is that most people plan to save or invest their tax rebates.

  6. Frank Says:
    April 17th, 2008 at 11:09 pm

    Although I love Jeremy’s response I am not close enough to a casino. I will go with GL but instead of BRK.B I am choosing DHT to be my horse.

  7. Phil Says:
    April 18th, 2008 at 4:31 am

    um – maybe the other 27% aren’t getting a rebate check. I know I won’t get one. I realigned some investments last year plus I received a higher bonus than I expected which kicked me a couple thousand above the phase out. I’m not complaining; 2007 was a great year and I would most certainly invest any extra $$. But the bloggers and news people always talk like EVERYONE is getting one of these checks. There are two large swaths (the poor and those that cleared > $160,000 or so) of the population that are participating negatively in this re-distribution of wealth. So, enjoy your checks. With Bush and Co. more than doubling the debt with their idiotic policies and dreadful stewardship you’ll need to thank your kids since they’ll be the ones ultimately paying for it.

  8. Sense Says:
    April 18th, 2008 at 5:54 am

    utility bills?? $600 or more on electricity?! All I have to say is, Whoa.

    I plan on putting mine towards my ‘move to New Zealand’ fund for use this summer. It’ll pay for, oh…a third to a half of a flight.

  9. Sylvia Says:
    April 18th, 2008 at 6:19 am

    We are paying off the last of our car loan — our only remaining non-mortgage debt.

  10. Michael Says:
    April 18th, 2008 at 7:39 am

    I’m saving mine because (a) I don’t trust the government to not treat it like a “pre-rebate” and expect it back during tax season next year (although I’ve read this isn’t true, I’d rather be safe), and (b) I just don’t need to spend $600 on anything right now. In the bank earning interest is the best place for it.

  11. Philip Says:
    April 18th, 2008 at 7:44 am

    I am actually considering spending, of course if I were not getting it I would spend about that amount anyway on a home improvement project that is coming up. I guess it is just a nice way to not ding my savings account.

  12. Philip Says:
    April 18th, 2008 at 7:48 am

    @Phil – (From my understanding, could be completely wrong here)
    You state that your investments and bonus were great for 2007, that means that you are not getting the rebate NOW, but I believe that the numbers will be ultimately based on 2008 earnings. Therefore from my understanding if 2008 is different then you will be able to claim it when you file your 08 taxes in 09.

    No “Pre-bate” but you might can still get the money. This could affect me slightly in the opposite direction, if I receive the rebate based on my 2007 numbers but this year go over the limit and then I will OWE the rebate back when I file, that will be a bummer.

  13. Geoff Says:
    April 18th, 2008 at 8:03 am

    I’ll be spending it on tuition. Grad school isn’t cheap, especially when paying out of pocket.

    As for Jeremy’s response.. everyone knows you put it all on black, not red.

  14. ddd Says:
    April 18th, 2008 at 8:05 am

    No debts to pay, so I intend to put the bulk of it in savings (with the ultimate destination probably an IRA). But I might buy a satin stainless steel revolver with part of it, American made of course.

  15. No Debt Plan Says:
    April 18th, 2008 at 8:53 am

    Savings, savings, savings.

  16. Jeremy Says:
    April 18th, 2008 at 8:59 am

    Geoff, I’m a contrarian.

  17. Miguel Says:
    April 18th, 2008 at 9:02 am

    What rebate check? Oh that… umm I guess I’m not worthy of getting one. But, y’all go ahead and enjoy yours.

  18. KC Says:
    April 18th, 2008 at 9:10 am

    Instead of taking $10k out of my savings to fund my Roth IRAs, I’ll use this as part to fund them. I also have about $2500 coming from overpayment of estimated taxes from last year. So those two together will help cushion my retirement w/o sacrificing as much from my current savings. I know its all in there together, but sometimes you feel as if your are robbing today to pay for tomorrow.

  19. Matt Says:
    April 18th, 2008 at 9:38 am

    I will not spend a penny of it. It’s going straight into my Roth IRA, Bernanke’s whining notwithstanding.

  20. Ernesto@InsuranceYak.com Says:
    April 18th, 2008 at 9:53 am

    I’m going to buy this fine piece of Americana: http://www.walldrug.com/pc-973-48-buck-doe-jackalope.aspx

    This will look handsome in my mancave.

  21. Thrifty Femme Says:
    April 18th, 2008 at 10:09 am

    Well, half of it was going to be saved until Skybus went belly up and my trip will now cost three times the original amount. Now I would say 10% is going to savings, 40% to new plane tickets, and 50% on new fence for the back yard.

  22. Mrs. Micah Says:
    April 18th, 2008 at 10:27 am

    We were going to use it for debt repayment, but it looks like we’re going to need another computer so Micah can actually write his dissertation. So we’re going to do our best to find a good computer deal and then put anything remaining towards debt. *sigh*

  23. Wilson Says:
    April 18th, 2008 at 11:11 am

    You are so happy now. I’m not even eligible for Roth IRA due to higher income.

  24. Tom Says:
    April 18th, 2008 at 11:53 am

    I’m using it to fly to Vegas to watch Jeremy put all of his on red.

  25. kitty Says:
    April 18th, 2008 at 12:14 pm

    I am not getting a penny since for some reason the government thinks I am rich, but I thought I’d share this advice I saw on the web on how to best help the American economy:

    If we spend that money at Wal-Mart, all the money will go to China. If we spend it on gasoline it will all go to the Arabs, if we purchase a computer it will all go to India, if we purchase fruit and vegetables it will all go to Mexico, Honduras, and Guatemala, if we purchase a good car it will all go to Japan, if we purchase useless crap it will all go to Taiwan and none of it will help the American economy.

    We need to keep that money here in America, so the only way to keep that money here at home is to buy prostitutes , cigarettes and beer, since those are the only businesses still in the US.

  26. Michael DeBusk Says:
    April 18th, 2008 at 12:16 pm

    I’m thinking of blowing mine on something frivolous.

  27. boardmadd Says:
    April 18th, 2008 at 1:05 pm

    Current plan is to split it evenly among our kids 529 plans.

  28. Foobarista Says:
    April 18th, 2008 at 3:07 pm

    Not getting the refund.

  29. Heidi Says:
    April 18th, 2008 at 3:18 pm

    I don’t get one either.

  30. Stephen Says:
    April 19th, 2008 at 12:57 am

    I am going with Jeremy and putting my 600 on “1-12″. Would anyone let me to place a bet for you as well? Compliments of the US Government of course.

  31. Chad Says:
    April 19th, 2008 at 2:18 am

    Im splitting mine 3 ways..
    first 1/3 … ROTH IRA
    Second 1/3 … Growth Stock Index Mutual Funds (taxable acct)
    Final 1/3 …Short term savings in Money Market acct for General Purpose use (Car Repair, Replacement or other “Oh Craps..”
    Speaking of which, my car must have heard that I’m getting a stimulus check because it decided to “Stimulate” the Service Engine Soon light… so i know where the last 1/3 is going now. DOH!!

  32. David Says:
    April 19th, 2008 at 8:11 pm

    Probably pay off debt.

  33. Andy Says:
    April 20th, 2008 at 8:15 pm

    Hookers

  34. db Says:
    April 20th, 2008 at 10:55 pm

    Don’t think I’m getting one.

    Oh well. I would have just put it towards my student loan. I’m more upset that I can’t deduct a dime of the nearly $10K in interest on my student loan than I am about missing out on the “rebate”.

  35. Larry Says:
    April 21st, 2008 at 2:26 pm

    As ironic as it may seem, we are using the tax rebate (assuming that we get one) to pay our Federal Income Tax. For some strange reason, we ended up owing a lot more this year than last year, so the rebate will go back to the government to offset what we owe.

  36. Meg Says:
    April 21st, 2008 at 3:19 pm

    I’m spending mine on my car insurance premium, which will come due for renewal in May.

    Though actually I would have been withdrawing the renewal premium from savings since I “save” the premium monthly and pay semi-annually. So technically my rebate is going into savings.

Comments