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Canadians are planning to spend 25 per cent less on summer entertainment than they did last year according to a new poll by CIBC.
The Canadian financial institution, in partnership with Angus Reid Forum, queried some 3,000 Canadians about their summer spending plans. The result? Canadians say they are going to spend less, pay more attention to their budget and also looking for new ways to save money this summer.
"Summer is filled with social events, outdoor activities and family travel, and it's easy to lose sight of your spending when you're trying to make the most of the short-lived season," says Jamie Golombek, managing director at CIBC's Wealth Strategies Group. "So it's encouraging to see that more Canadians are trying to stay on top of their budgets this year."
CIBC Cost of Summer Poll Highlights
• On average, Canadians plan to spend $1,346 on their summer plans, including travel, dining, recreational activities and summer goods (like barbecues and sports equipment.) This number reflects a decrease of approximately 25 per cent from last year's reported figure of $1,766.
• Overwhelmingly (67 per cent), Canadians agree that summer is the time when they make more impulsive spending decisions on entertainment and fun.
• More Canadians plan to stick to their budget this summer. One third say they will stick very closely to their budget (up from 29 per cent from 2015) and another half say they will somewhat stick to their budget (up from 45 per cent in 2015). Interestingly, nearly 20 per cent of people polled said they either lose track of their budget or don't have a budget at all.
Money-Saving Tips
For Canadians who plan to carefully watch the bottom line, Golombek recommends using some of CIBC's online tools.
"Online tools are a great way to track your spending," said Golombek, "You can set budgets in customized categories and create spend alerts to notify you if you exceed your budget or when you approach your credit limit."
Golombek's other personal tips include:
• Overseas travellers will frequently get a better foreign exchange rate at their home financial institution before they depart. Don't wait to exchange money once you've arrived.
• Use credit card points to book summer travel - not just for airfare, but also for hotel rooms.
• When renting a car, know what supplemental coverage your credit card offers, which could save you money by declining the car rental company's extra protection.
• Summer camp fees often qualify for the child care expense deduction, which can help consumers lower their after-tax costs.
Golombek also reminds consumers that 2016 is the last year to claim the 15 per cent federal refundable Children's Fitness Credit (up to $500 in expenses) and the 15 per cent non-refundable Children's Arts Credit (up to $250 in expenses), so be sure to save your receipts.
With a majority (53 per cent) of Canadians indicating they are looking for ways to save money, a few of the poll respondents also offered their own tips, including:
• Look for deals and discounts on the internet, use coupons and book early
• Attend free events, festivals and concerts
• Eat out less. Instead, barbecue and entertain friends at home
• Head outdoors to beaches and parks for a picnic or to go camping
• Go on day-trips close to home or travel within Canada
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