According to a recent study from Edward Jones, only 6 percent of Americans are planning to invest their 2016 tax refunds this year. The study, which surveyed 1004 respondents across generations, regions and income levels, found that the majority of Americans (53 percent) plan to put their tax refund towards necessary expenses, such as student loans and credit card payments.

"U.S. stocks are up this year, helped by modest economic growth and stronger company profits. We think those will continue to support rising stock prices over time," said Kate Warne, Principal and Investment Strategist at Edward Jones. "By investing now, Americans can put money to work in support of both their short- and long-term goals."

According to the study, 31 percent of respondents plan to save their refund and the remaining 9 percent plan to put it towards something fun, like a vacation or entertainment. When examining the generational differences, Millennials were most likely to save their tax refunds, with 33 percent indicating so, followed by Baby Boomers (31 percent) and Gen Xers (26 percent). At the same time, Baby Boomers were most likely to spend their tax refunds on fun expenses (15 percent), followed by Millennials (9 percent) and Gen Xers (6 percent).

"Using the refund to pay down debt with higher interest rates, such as credit cards and student loans, is certainly recommended to help get your finances in order. But don't focus exclusively on the short-term. The refund can be a great way to increase how much you are investing toward retirement to get your retirement strategy back on track as well," said Scott Thoma, Principal and Retirement Strategist at Edward Jones.

Other findings from the study show that the presence of children in a household affected respondents' allocations. Sixty-six percent of families with children chose to spend the majority of their tax refunds on necessary expenses. For those without children, only 46 percent indicated they would allocate the money to these costs.