As Tax Day nears and bonus payouts have recently been awarded, many consumers are facing a 'save or spend' challenge. This year, the Capital One 'Bonus and Tax Survey' dug deeper into the mindsets of consumers, revealing many unexpected findings about what exactly people are doing with potential extra income.

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Top-Line Findings

Facing Financial Fight or Flight

Should I Spend or Should I Save?:Like the evolutionary 'fight or flight' response, respondents often have two primary reactions when faced with spending their bonus or tax refund - spend it or save it.

· Interestingly, there is an almost even split between those who say their very first thought is to save their tax refund away for a rainy day or retirement (41%) and those whose first instinct is to spend it paying down debts and making needed purchases (40%).

· While four in ten (42%) said their first instinct is to put away their bonus for a rainy day or retirement, more than a third (37%) say their first instinct is to spend the cash to chip away at debt and make needed purchases.

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Practically Speaking:

· When it comes to their tax refund, a full two-thirds (65%) believe that the best way to approach spending the money is to be 'practical.'

· When it comes to their bonus, more than a third (36%) say they will 'likely' save their bonus this year.

· Only 14% say they are 'likely' to use their bonus to treat themselves.

· After savings, bonus money is 'likely' to be used to make a dent in debt (27%) or cover basic necessities like rent/mortgage, food, and gas (17%).

Channeling Creative Pragmatism

Money isn't always the same:Respondents are channeling different ways to think about what 'more' money really means to them.

· More than two thirds (67%) of those who expect to get a bonus would rather have a hefty one-time bonus over a modest but retroactive pay raise.

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Financial Pragmatism Prevails: When given the choice of being practical, creative, strict or frivolous with their tax refund:

· A full two-thirds (65%) believe that the best way to approach spending that money is to be practical.

· Almost two-thirds (62%) say the best approach to using their bonus is to be 'practical.'

· Women (70%) are more likely than men (54%) to be 'practical' with their bonus money.

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Feeling Taxed: When looking at their tax refund, the emotional response range is wide but often anchored in pride and practicality.

· While more than half (51%) of respondents say they feel good about spending their tax refund on the things they need, almost a quarter (23%) admit that they wish they could spend it on the things they want.

Bonus Boosters and Tax Liens

Bonus Buzz Kills: When they want a bonus boost, people can become very clever in the everyday lifestyle choices they are willing to modify.

· Forty-three percent say they would be willing to give up caffeine for a year for a bigger bonus, and almost as many (40%) say they would go on a year-long digital detox with limited access to their phone, internet, and social media for some extra cash flow.

· Additionally, more Millennials are willing to go on a digital detox than Gen Xers (46% vs. 31%).

Stay In & Save:

· If it meant getting a bigger bonus, a third (33%) say they are willing to give up date night for a year.

· Even more (38%) say they would turn down every party invitation for a year to increase their chances of a bigger bonus.

Checking Off the Wish List

Adventure Time:

· Budget and bills aside, nearly two-thirds (62%) of respondents said they would use their bonus on an adventure trip like Rock Band Camp, Rain Forest Hiking, or Skydiving.

The Emperor's New Clothes:

· More than a third (34%) say they would spend their bonus on a new bespoke, custom-made wardrobe if budget was not a concern.

· Surprisingly, men are more likely than women to be clotheshorses (39% vs. 29%).

· Millennials 18-34 (39%) are more likely to want closet refresh than their older Gen Xer 35-54 counterparts (29%).

Tantalize the Taste Buds:

· Some respondents decided to literally go with their gut when it comes to using their bonus, with 21% saying they would choose a multi-course tasting menu at a three star restaurant.

Wish Fulfillment:

· More than one in ten (14%) said they had something else in mind when it came to spending their bonus without factoring in their budget or bills. The most cited item outside of a much-needed vacation? A new ride.

People can useCapital One Walletto capture receipts, digitize gift cards and view transactions in enhanced detail and make it easier to save up for their wish list.

Capital One Financial Corporation issued this content on 24 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 March 2016 13:40:54 UTC

Original Document: http://press.capitalone.com/phoenix.zhtml?c=251626&p=irol-newsArticle&ID=2150739