Summer Overspending Habits: A Trend for Canadians
With warm weather comes the inclination to get out, have fun and, inevitably, spend more.
As temperatures rise, one third of Canadians acknowledge a habit of overspending during the summer season, according to a new report from BMO.
Seasonal spikes in spending are a common trend, but excessive spending becomes a bigger issue for Canadians as over a quarter say they go into debt as a result. Half of those surveyed expect to pay off less debt than usual during the summer and one third find it difficult to get back on track financially after the summer.
Savings accounts are also expected to take a hit as 27 per cent of surveyors report to dip into their savings to support their summer spending. Another 13 per cent say they’ll forego saving and paying off debt altogether to enjoy the season. In the long-term, 52 per cent admit that their summer habits have negative effects on their savings.
Many Canadians plan to limit their travel plans
Travelling can easily become the culprit that leads to overspending; which is likely why 25 per cent of Canadians say they will put off travelling this season for budgetary reasons and 15 per cent feel they simply have too many other financial commitments. The fluctuating Canadian dollar is also cause for concern for the 47 per cent who say they’ll be restricting their travel to domestic trips.
How to enjoy summer for less
It’s hard to not give into the temptation and break the bank when warm weather in Canada is so quick to come and go. But there are still inexpensive – and even free – ways to have fun in the sun while it lasts.
- Take advantage of credit card rewards: Does your credit card pay you? If it doesn't, it may be time to look for a new card. There are many rewards credit cards that offer cash back, travel perks, or points that can go towards buying gift cards, entertainment, activities or merchandise. If a card will give you cash back or help you spend less on items you'd buy anyway, perhaps that's a credit card worth having.
- Create and stick to a budget: It’s recommended that you spend no more than five per cent of your annual income on recreation and vacation. Create a summer budget that allows for some saving, some fun, and some room to pay off any debt. If you’re planning a getaway, make sure to pre-budget all expenses, including food, taxes, and allowance for souvenirs.
- Truly enjoy the outdoors: Ditch the car and walk or bike to nearby destinations; cancel your gym membership and go for runs outside; or plan potluck picnics and barbecues with family and friends in the backyard or a local park instead of eating out.
- Look for local activities: With summer comes many public outdoor festivities – most for a small fee or even free! Check your city’s summer event guide for upcoming farmer’s markets, music festivals, arts and crafts fairs, or carnivals in your area.
- Plan a staycation: You don’t need a far-off destination to take in the sites. Take a day-trip to the closest beach, pitch a tent in the backyard, or go for a hike or bike ride on a local trail.
Related Read: Top 10 Places to Visit in Canada and Why
- Travel cheap: If you do plan on travelling, pack light to avoid check-in and overweight luggage fees, stay with friends or family, and pack snacks instead of eating out all day.Related Read: Tips to Travel Cheap and Travel Smart
How to enjoy summer with more: Pay less on your car insurance
Car insurance can account for a significant portion of your regular monthly expenses. Compare car insurance quotes to ensure you have the best policy at the best price, because rates often change. Kanetix.ca customers save on average $750 on their car insurance. That’s a huge chunk of change to put towards your next getaway!