Tax refunds are trending a bit higher this year. Here's how people are spending them

"The average tax refund so far this year is $3,521, up about 11% from the same time last year, according to the Internal Revenue Service."

"Discretionary spending is up, according to credit and debit card data from the institute. Early filers spent more on electronics, hotels, lodgings and restaurants than they did a year prior."

"About two-thirds of filers said their tax refund was either very or somewhat important for their financial situation, according to a survey by LendingTree."

"People aren't just going out and blowing their tax refund on fun and existing stuff."

This tax season, the average refund is $3,521, an 11% increase from last year, largely due to Republican tax cuts. Many early filers are experiencing larger refunds, with some planning to use the money for significant purchases like cars. Discretionary spending has increased, particularly on electronics and dining, but many are also using refunds to pay off debt and save. Approximately two-thirds of filers consider their refund important for their financial situation, indicating a reliance on these funds for essential expenses.

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