CFPB Launches Site Encouraging Consumers to Build Savings with Tax Refunds

Mar 2, 2020Financial Literacy, News

In a new webpage launched last week, the Consumer Financial Protection Bureau (CFPB) is highlighting resources aimed at helping consumers build savings with their tax refunds. Featuring video and written content, the webpage shows consumers different types of accounts where taxpayers can deposit their refunds and encourages them to save.

A CFPB official said in a statement that “tax time is a great opportunity to take that first important step of building your savings. Increased savings can enhance a consumer’s financial well being.”

The Bureau’s new webpage is part of an initiative launched last year in an effort to promote the creation and growth of emergency-savings accounts. It includes material and information for free and affordable tax filing, and advice for taxpayers to protect themselves from fraud. A report issued last year by the Federal Reserve found that nearly four in ten adults would not be able to cover an unexpected expense of $400 with either cash, savings, or a credit card paid off at the next statement.

According to that report, 27 percent of adults would have to borrow or sell something to pay the expense, and 12 percent would not be able to cover the expense at all.

“For many people, making ends meet throughout the year is tough, and saving regularly may seem unrealistic. The money you get in your tax refund could help you build or replenish your rainy day fund.”

Last year, more than 70 percent of taxpayers received refunds with the average amount refunded through December 27 being $2,869.

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