Canadians holding onto their money as summer heats up
Majority of Canadians plan on spending less than $2,000 on summer fun 63 per cent of Canadians say the price of gas impacts their decision to go on a road trip
TORONTO, ON – June 26, 2014 – Despite longer days, warmer weather and more vacation time, a recent survey by Tangerine found that almost 70 per cent of Canadians do not spend more money during summer, with some even spending less compared to the rest of the year. The survey found that 81 per cent of Canadians plan on spending just $2,000 or less on non-essential items this summer and 70 per cent report that they keep track of their budget – even during the warmer months.
So what are these financially responsible Canadians doing to take advantage of the season? Favourite cost-free summertime activities include going for walks (22 per cent), visiting friends (18 per cent) and tending to the garden (16 per cent). Other activities listed include fishing, reading and relaxing around the house.
“It’s encouraging to see how budget-conscious Canadians are despite the perception that spending may get off track during this time of year, when kids are out of school and people generally have more free time in their schedules,” says Silvio Stroescu, VP and Head of Savings and Investments at Tangerine. “It goes to show that for those who make saving and budgeting a priority, it becomes a habit and part of a lifestyle that doesn’t take a vacation when we do.”
Perhaps not surprisingly, millennials (those aged 18-34) were the most likely to report spending more during the summer months compared to those 35+ (42 per cent vs. 30 per cent). Spending more on food, drinks and entertainment (62 per cent, 18-34) is the main reason for this increase. Millenials are also more likely to book a vacation they can’t yet pay for (32 per cent vs. 19 per cent) and skip a bill payment in order to have more money for summer fun (33 per cent vs. 17 per cent) than those 35+.
When it comes to getting away, the majority of Canadians remain budget-focused and unwilling to spend on a whim. Almost 80 per cent (77 per cent) are unlikely to book a summer vacation they can’t yet pay for, and 63 per cent say the price of gas impacts their decision to go on a road trip.
For Canadians in need of a budget brush-up this summer, Preet Banerjee, renowned personal finance expert and contributor to Tangerine’s Forward Thinking blog, offers the following tips:
- Keep a keen eye – Spending can get off track quickly if you’re not checking in on a regular basis. Make a daily habit of logging into your bank account to keep expenses top of mind – this is especially important during busy times like summer. Having a mobile banking app on your smartphone can make this very speedy and convenient, especially if you’re on the go or away on vacation. Tangerine has a feature on their mobile app called Orange Snapshot, which allows users to quickly view a summary of their accounts without the hassle of logging in.
- Make it Automatic – According to a recent survey by Tangerine, of those who admit to spending more during the summer months, 81 per cent say it impacts the amount they are able to save. By setting up an automatic savings plan, you can abide by one of the most important principles of saving – pay yourself first. This way the amount you have leftover for non-essentials will not impact the amount you are able to save – regardless of what season it is.
- Stay local - Instead of spending money on a costly vacation, travel only a short distance out of town and experience what a neighbouring community has to offer. Check out low-cost attractions such as wine tasting, historic home tours, or local theatre. To make it feel more like a vacation, stay the night at a bed and breakfast or nearby campsite. Lastly, consider carpooling with family members or friends to save on the cost of gas.
From June 13-16, 2014, an online survey was conducted among 1,508 randomly selected Canadian adults age 18+, who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to age, gender and region Census data to ensure a representative sample of the adult Canadian population. Discrepancies in or between totals are due to rounding.
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With more than 1.9 million clients and close to $40 billion in total assets, we are Canada’s leading direct bank. Tangerine offers flexible and accessible banking, innovative products and services, fair fees, and award-winning client service. From chequing and savings accounts, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and mobile app to our 24/7 contact centres and Café locations. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates as a wholly-owned subsidiary.