What Are Americans Doing With Their Tax Refunds?

It’s that time of year again, when you gather together all your receipts and cross your fingers hoping that once you finish your taxes you’ll be pleasantly surprised with a refund. So, what will most people be doing with this sudden windfall? Well, apparently a lot of folks have pretty sensible plans.

According to a new GoBankingRates poll, 21% of respondents say they won’t actually be getting a refund this year, but those who do are mostly planning to use it wisely. In fact, 41%, say they’ll put the money away in savings, while 38% will put to pay off debt. Of course some people will take that newfound money and blow it, with 9% putting it towards a vacation, 5% using it for a major purchase and 4% using it on a splurge.

Believe it or not, it seems Millennials are the most likely to use common sense when it comes to refunds, which is a drastic change from last year. Overall, 54% of 18 to 24-year-olds will put their money towards savings, although 25% of them don’t actually expect to receive a refund. Last year, Millennials were the ones more likely to use their refund on a splurge.

And not surprising, the more money you have, the more likely you are to use it frivolously. The survey finds that 67% of those who make $150,000 or more plan to use the refund on a splurge or vacation, while only 15% of those making between $25K and $49,999 say the same.

MIAMI - APRIL 14:  Felipe Castro holds a sign advertising a tax preparation office for people that still need help completing their taxes before the Internal Revenue Service deadline on April 14, 2010 in Miami, Florida.  With only one day to go before the April 15th deadline to file taxes, accountants around the U.S. are swamped with people who waited until the last day to file. (Photo by Joe Raedle/Getty Images)

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