As Monday marks Tax Day across the country, taxpayers have a few options on what to do with their newly collected refunds or bonuses. This year, Capital One conducted their own "Bonus & Tax Survey" to find out what exactly people plan to do with their extra cash.
Amongst the survey's findings:
- Approximately two-thirds (61%) of those polled said they would rather spend their tax refund now on something they need rather than save it for something they want later.
- Those with more modest incomes (under $50K annually) are more likely to spend their tax refunds to pay down debt (48%), while higher earners ($100K+ income) are more likely to save their tax refunds (47%).
- An almost even split between those who say they'll save the refund for a rainy day or retirement (41%) and those whose first instinct is to spend it on debts and making needed purchases (40%).
- More than half (51%) say they feel good about spending their refund on things they need, but almost a quarter (23%) wish they could spend it on the things they want.
- Women (73%) and those with moderate incomes ($50K - $75K range) (71%) are most likely to have a practical approach to refunds.
- More than half (56%) feel their tax refund is money owed back to them; a sentiment is consistent across gender, age, income and geography.
- More than half (58%) polled feel their bonus is money they have earned.
- Millennials aged 18-34 (63%) are more likely to say they feel they have earned their bonus than Gen Xers (52%).
- A little more than a third (36%) of those polled say they will likely use their bonus for savings.
For the full Survey results, head to Capital One's site here.