Most people who are expecting tax refunds this year — or who already got one — plan to use the money to improve their personal finances.

About a third (34%) say they’ll use it to pay down debt, and another third (33%) say they’ll save or invest the money, a new survey reveals.

About a quarter (26%) say they spend the extra cash on necessities such as food and utility bills, and 3% want to use it to live it up and go on vacation or a shopping spree, according to the survey of 1,003 adults, conducted for Bankrate.com.

The survey found:

  • Two-thirds (67%) of adults who are 18 to 29 years old expect to receive a tax refund this year or have already gotten one vs. 40% of folks 50 to 64.
  • When it comes to getting a refund, 38% of adults would like to receive a large one, 19%, a small refund; 27%, no refund and not owe any taxes; 7%, owe a small amount.
  • Some people view having extra money withheld from their paychecks for income tax as a way to save, says Bankrate.com tax analyst Kay Bell. But she advises against it because “the bank of Uncle Sam” pays no interest.

Instead, you’re better off to have the correct amount deducted for taxes and have any extra money automatically deposited in a bank or credit union where you may get at least some interest, Bell says.

You can use that money to create an emergency savings or pay down credit card debt, she says.

The average refund so far this year is $2,988, up slightly from $2,969 at this same point last year, the IRS said Thursday.

That means many people are paying about $250 a month more in income taxes than they need to, Bell says. “If you took that $250 and paid credit card debt, which might have an interest rate of 18% to 24%, you would pay off your cards faster.”

She recommends people use the withholding calculator on the IRS website (irs.gov) to figure out how much income tax they should have withheld.

The survey also found that when people were offered a list of programs and asked what they would be most willing to pay higher taxes for:

  • 25% said they would be willing to pay higher taxes in exchange for free college tuition for all students. About 43% of those ages 18 to 29 feel this way vs. only 9% of adults over the age of 65.
  • 24% would be willing to pay higher taxes for repairing and rebuilding roads, bridges and mass transit.
  • 22% free health care for anyone who needs it.
  • 4%, financial assistance for people who want to purchase or rent a home.
  • 23% don’t want to pay higher taxes for any of these.

Source: USA TODAY, by Nanci Hellmich, 3/12/15