Rethinking Tax Refunds and Financial Decision Making

ABOUT THE EPISODE Wendy De La Rosa, Assistant Professor of Marketing at the Wharton School, explores how people think about tax refunds and why those decisions often don’t align with their financial goals.

She explains why many treat refunds as “extra money,” leading to overspending and missed opportunities to save or pay down debt. The conversation also highlights inefficiencies in the tax system, where 20 to 30 percent of refunded dollars are lost to preparation costs, and shares practical strategies like pre-commitment and automation to improve financial outcomes.

ABOUT THE PODCAST Every day, business scholars answer pressing questions in their research - but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.

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