Summer Conundrum: Canadians Want to Save But Still Plan to Spend Average of $6,350 on Summer Fun-BMO Poll
- Three-quarters expect to spend the same or more compared to last summer - However, six-in-ten say they are more concerned with saving money than in 2013 - Impulse purchases account for nearly 20 per cent of summer spending
TORONTO, ONTARIO--(Marketwired - Jun 11, 2014) - According to the 2014 BMO Summer Spending Survey, while the majority of Canadians are concerned about their financial savings this summer, many still plan to spend an average of $6,349.28 on travel, entertainment and impulse purchases.
The survey, conducted by Pollara, revealed the average Canadian's mindset towards summer saving - and their intended spending:
While the majority (61 per cent) say they are more concerned about saving money compared to this time last year, three quarters (77 per cent) say they will be spending either the same or more than they did in 2013.
Weekly entertainment represents the largest non-essential summer expense for Canadians, costing an average of $3,291.34 for the whole summer.
Impulse purchases account for a third of Canadians weekly entertainment costs ($1,162.07), and 18 per cent of total summer costs.
Vacations, including weekend trips out of town and longer vacations, account for 28 per cent of total summer budgets ($1,802.40).
Seasonal consumer goods will cost Canadians $309.49, home and garden projects will cost $535.78, and big purchases will cost $410.27, accounting for 20 per cent of the summer budget.
"Canadians are conscious of the need to save money and monitor their spending. However, there seems to be a disconnect between their goal of focusing on saving and the amount they intend to spend," said Tony Tintinalli, Regional Vice President, BMO Bank of Montreal. "The satisfaction of saving money can be achieved with a realistic budget. Over-spending on non-essential items, and not keeping track of how much one is spending throughout the summer, can lead to unpleasant surprises come the fall."
Mr. Tintinalli added that taking advantage of online personal finance tools, such as mobile banking apps, can help Canadians actively monitor day-to-day spending and avoid making impulse purchases that can take a significant toll on household finances over time.
"Eight-in-ten Canadians who have adopted mobile banking say they are able to make better purchasing decisions while on the go, which over the course of the summer could help save a significant amount of money."
Summer spending and saving by region:
Average Spend by Province | |||||
ATL | QC | ON | MB/SK | AB | BC |
$4,149.29 | $6,318.63 | $6,550.86 | $7,012.96 | $8,124.57 | $5,302.76 |
BMO offers the following tips to help Canadians maximise their savings and fun this summer:
- Leverage rewards to offset costs: Redeem reward currency to offset travel costs and save on merchandise, such as sporting or camping gear, passes to local attractions and more.
- Don't overspend: Spend less than you make. Develop a budget that establishes how household expenses will be paid and how spending will be managed. Take advantage of free online tools, such as BMO MoneyLogic, included with your BMO Bank Plan and personal BMO credit card, to help you stay on top of everyday spending and saving.
- Shop around for a credit card that rewards you: If used responsibly, credit cards are a great payment option because of their convenience, security and loyalty reward features. This summer, apply for a BMO AIR MILES World MasterCard and earn up to 2,000 bonus AIR MILES reward miles (1,000 miles with your first purchase and 1,000 miles when you spend $1,000 in first three months). That's enough for two short-haul flights - helping you save on summer travel.
The BMO Summer Spending Survey which was conducted by Pollara between May 26th and 28th, 2014, with an online sample of 1,518 adult Canadians. Data has been weighted using the latest Canadian census information to be representative in terms of age, gender and region. The margin of error for a probability sample of this size is ± 2.5%, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets of $582 billion and more than 45,500 employees at April 30, 2014.
