37% of Millennials to reduce debt with tax refunds

One-third intend to invest compared to 25% of Canadians overall.

TORONTO — When Millennials cash in their income tax refunds, one-third of them plan to save or invest the cash, compared to 25% of Canadians overall, according to BMO Nesbitt Burns.

The fifth annual tax study conducted by Pollara for BMO’s financial advisory group, examines how many Millennials (those aged 18 to 34) filed their taxes before the deadline and how they plan to spend the refund money. Highlights are as follows:

• 97% filed on or before the deadline (compared to 98% of Canadians overall).

• 37% intending to pay off outstanding bills and/or reduce debt (compared to 40%).

• 16% will pay for travel and/or purchase leisure items (compared to 14%).

• 14% will pay down their mortgages (compared to 9%).

The survey was conducted by Pollara from March 14-17, with an online sample of 1,007 Canadians. The margin of error for a probability sample of this size is ± 3.1%, 19 times out of 20.

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