As the year comes to an end next week, it’s time to reflect on your finances. This should include how much money you just spent on the holidays as well as what you can expect in 2020. Therefore, in this weekly round-up, we’re focusing on consumer spending and tax refunds.
Review of Consumer Spending
Budgeting and consumer spending are presenting difficulties for many Americans according to a survey by Slickdeals.net. There are several key takeaways from the CNBC article: Consumers overspend by $7,400 a year. Here are the weekly splurges that cause the most trouble.
- The amount that consumers spend each week averages $143 more than the average $197 budgeted. That extra spending equals roughly $7,400 each year.
- Online shopping, groceries and subscription services are at the top of the list of trouble categories.
- Consumers carry nearly $1.1 trillion in credit card debt, up from $888 billion five years ago, according to the Federal Reserve.
- The survey asked 2,000 adults about their budgeting habits and weekly spending.
News of 2020 Tax Refunds
USA Today has recently reported on what people can expect from their 2020 tax refunds in the article: Counting on a tax refund in 2020? Here’s why that may not happen. The article highlights the 2018 tax overhaul and its consequences. Basically, people received a smaller refund or even owed money because of the changes. While more money was available in their paychecks, that nice chunk of change from the refund that used to pay for things disappeared without a back-up plan. Consumer spending was disrupted.
Additionally, many consumers still have not adjust their witholdings and will end up owing money. Have you checked your tax filings? Be sure to update your information with your employer if any changes need to be made.
Stay tuned next week for more highlights from the news and the economy! If you’re struggling to pay off debt, schedule a free credit counseling session with us today.