Instead of running to the mall after receiving their tax refunds this year, the majority of Americans plan on heading to the bank, a new study finds.
Research from TD Ameritrade revealed that among the nearly half of all taxpayers who expect to get a refund this year, 47 percent plan to save their refund money, while 44 percent expect to use it to pay off debt.
Buying necessities, investing it and donating it to charity are some of the other ways those surveyed are expecting to spend this year's tax refunds. Just 15 percent are planning to spend their refund on discretionary items.
"It’s good to see that people are more likely to save their tax refund or use it to pay down debt rather than perhaps spending it unwisely," said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade.
An interesting shift occurs once men and women get married, the study found. Single women are least likely to save their tax refund, while married women are most likely to. The opposite is true of men, however, as 54 percent of single males will save their tax refund money, compared with just 41 percent of their married peers.
The research also uncovered a difference in priorities among the generations. Showing that younger generations have possibly learned something from the recent financial crises, nearly 60 percent of those Generation Y taxpayers intend to save their refund, compared with just 36 percent of Generation X and 40 percent of Baby Boomers.
The study was based on surveys of 1,000 Americans over age 18.