{"id":4667,"date":"2026-04-03T10:00:35","date_gmt":"2026-04-03T10:00:35","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=4667"},"modified":"2026-04-03T10:00:35","modified_gmt":"2026-04-03T10:00:35","slug":"if-that-tax-refund-feels-like-a-lifeline-youre-not-alone-how-to-use-it-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=4667","title":{"rendered":"If that tax refund feels like a lifeline, you\u2019re not alone. How to use it – National"},"content":{"rendered":"

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Canadians will be checking their bank accounts over the next few weeks hoping for a tax refund, but the spring bump is no longer just a bonus for many \u2014 it\u2019s a financial lifeline, data shows.<\/p>\n

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Canada\u2019s tax filing season is officially underway, with the tax filing deadline set at April 30.<\/p>\n

An EQ Bank survey released last week shows more than one-third (36 per cent) of Canadians say they are relying on their tax refund more this year than last year, with the figure jumping to more than four in 10 (42 per cent) among younger Canadians aged 18-34.<\/p>\n

Women (41 per cent) are more likely than men (32 per cent) to say they are relying on their refund for expenses.<\/p>\n

\u201cCanadians are using their refunds to reduce debt, build savings, and cover essential costs, with very little appetite for discretionary spending, like travel or dining,\u201d said Dan Broten, senior vice-president and head of EQ Bank.<\/p>\n

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The data shows that younger Canadians are more sensitive to the cost of living crisis than the general population, Broten added.<\/p>\n

\u201cThis is generally a life stage where many are taking on new financial obligations \u2014 from housing costs to daycare expenses \u2014 often without the same financial cushion as older cohorts,\u201d he said.<\/p>\n

\u201cTo us, it shows just how much every dollar matters right now,\u201d Borten said.<\/p>\n

Younger Canadians are facing an uphill battle when it comes to building wealth, said Justin Leon, financial adviser at Wealthsimple.<\/p>\n

\u201cWhen a once-a-year tax refund becomes the moment you finally catch your breath, that\u2019s a signal that the gap between income and expenses has become structural, not temporary,\u201d Leon said.<\/p>\n

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Around 28 per cent of respondents said they used their tax refunds to pay down their debt, with 22 per cent saying they used it to cover weekly expenses. Another 28 per cent said they contributed to a registered savings plan, like an RRSP or a TFSA.<\/p>\n

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Only nine per cent said they plan to use their tax refund on non-essential purchases such as travel, dining out or entertainment.<\/p>\n

\u201cA lot Canadians rely on that tax refund as a way to kind of buoy up their finances and just get a bit more breathing room. The problem is it doesn\u2019t last,\u201d said Stacy Yanchuk Oleksy, CEO of not-for-profit credit counselling agency Money Mentors.<\/p>\n

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\n\t\t\t\tHow should you manage your refund?\t\t\t<\/h2>\n<\/p><\/div>\n

It\u2019s helpful to think ahead of time how you\u2019re going to spend your tax refund, some financial advisors say.<\/p>\n

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\u201cThere\u2019s no single formula that works for everyone, but a good starting framework is to think in thirds,\u201d Leon said.<\/p>\n

He recommends splitting your tax refund into three piles \u2014 one for paying down high interest debt, like credit cards, another for an emergency fund, and a third for a longer-term goal like putting it in a TFSA or RRSP.<\/p>\n

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