A new survey found that 45% of Gen Z and Millennial adults in the United States plan to use their tax refunds to pay bills or reduce debt, according to research conducted by Beyond Finance and Operation HOPE.
The study surveyed 2,000 Gen Z and Millennial respondents and found that fewer than 4% planned to spend their refunds on leisure activities such as travel or entertainment.
Researchers said respondents cited rising living costs and borrowing expenses as key factors shaping their financial decisions.
Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, said survey results showed that younger adults used tax refunds to cover basic expenses and manage debt. She said respondents focused on improving financial stability in what she described as an uncertain economic environment.
The survey also found that 77% of respondents reported using short-term financial tools, including buy-now-pay-later services, to cover essential expenses such as groceries and utilities.
According to the findings, 71% of respondents said they relied on side jobs to meet financial needs, while 70% said wealth-building felt difficult to achieve.
The study reported that 39% of respondents used artificial intelligence tools to model personal financial decisions.
It also found that 24% of Gen Z respondents said they relied more on social media financial advice than guidance from parents.
Researchers said the results reflected changing financial behaviors among younger adults.