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With an estimated 15 million millennials saddled with student debt, it's not surprising how some of them expect to spend their income tax refunds.

A new national survey released last week by the $18.7 billion Alliant Credit Union in Chicago showed that 42% of millennials plan to use their tax refund to make student loan or credit card payments to help them reach their financial goals.

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But this year's average federal tax refund of $2,933 won't go as far as last year's average refund of $3,305, an 11% drop, CNBC reported.

Millennials carry an average student loan debt of more than $33,000 per borrower, according to the Education Data Initiative, a research firm that collects data and statistics about the U.S. education system.

Members of Gen Y that are now in the age range of 23 to 41 also make up the largest number of student loan borrowers compared to other generations. However, Alliant said its survey indicates millennials are more committed to smart money management than other generations.

"When it comes down to personal savings priorities and strategies, millennials take the lead in learning about the different options available to them," Alliant said in its prepared statement. "Seventy-one percent of millennials utilize and understand the benefits of a certificate of deposit (CD), compared to just 42% of Gen Z and 39% of baby boomers."

Nevertheless, with average rates ranging between 4% (for 48 months) to 5% (for 12 months), all generations agree on the value and security of CDs for growing their savings, the credit union added.

What's more, 71% of Gen Y surveyed said investing their money in a CD would minimize their desire to impulse shop, while 57% of Gen Z, 56% of Gen X and 52% of baby boomers agree, according to Alliant's survey.

"Millennials (70%) also take the lead when it comes to being knowledgeable on how to protect themselves against identity fraud compared to just 40% of Gen Z, 46% of Gen X and 41% of baby boomers," the credit union said.  "Alliant found that half of the millennials surveyed (50%) have already enabled multi-factor authentication on their online banking accounts."

Alliant partnered with Atomik Research in Bentonville, Ark., to conduct an online survey of 2,006 adults who identify as Gen Z, millennials, Gen X and baby boomers throughout the United States. The margin of error for the overall sample is +/- 2% with a confidence level of 95%. The survey was conducted between Feb. 24 and March 3.

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Peter Strozniak

Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.