Gen Z Cutting Drinking And Travel To Save Money After Receiving Smaller Tax Refunds Leave a comment

If you’ve made some lifestyle changes as a result of receiving a smaller tax refund, you’re not alone.

According to new research from Trustpilot, more than three quarters (64 percent) of Gen Z and Millennials (ages 18-41) in the US say this year’s tax season is stressing them out. The data shows that young adults are seriously re-prioritizing their tax refunds if they were to decrease from the previous year, as speculated by the IRS

“Financial stress has taken a toll on everyone this year, as inflation continues to affect how people approach their household spending,” said Mieke De Schepper, Chief Commercial Officer at Trustpilot in a news release. “This has been especially taxing for young individuals as they navigate their financial future, and it’s clear that this year’s tax season in the U.S. is only adding to that stress, as young Americans work through the filing process, as well as the financial burden that comes with it. It’s important that consumers feel they can turn to someone, or an independent platform, that can help them navigate the stressful process of tax returns. It’s about the concept of trust, and Trustpilot can help consumers find businesses that can demonstrate that they are trusted by other people who are going through the same experience.” 

On average, Americans are seeing smaller tax refunds than in years past because there haven’t been economic stimuli applied like in 2021 and 2022.

Young adults shared they’re more nervous than ever about tax filings. According to Trustpilot’s research, nearly 2 in 5 millennial and gen-z tax filers (39 percent) said they are uncertain about their tax filing abilities because the tax filing system in the U.S. is too confusing

With that, they also shared that if their tax filings are smaller, Gen Z and Millennials would make lifestyle/budgetary changes sacrificing the purchase of designer clothes, beauty treatments, travel, top shelf liquor, dining out and streaming subscriptions (1 in 10). 

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