7 per cent are making changes to their summer spending habits in response to the rising cost of living
TORONTO, June 27, 2024 /CNW/ – Many Canadians are looking to travel this summer and are searching for ways to do so without blowing their budgets. According to a new poll from CIBC, nearly 8 in 10 Canadians (77 per cent) are making changes to their summer spending habits in response to the rising cost of living, while actively looking for ways to save on summer activities.
Despite a strong desire to travel and splurge on summer fun, most Canadians (64 per cent) are embracing a savings mindset this season. Half of Canadians say they are cutting back on day-to-day expenses, while 37 per cent are forgoing expensive purchases, and more than a quarter (27 per cent) are scaling back their travel plans.
Among those who have already made plans to travel, 62 per cent are demonstrating a budget-conscious approach when planning trips, with 40 per cent intending to spend less than $2,000 on travel. To stretch their dollars further, most (67 per cent) are planning to vacation in Canada, over getaways in the United States (28 per cent) and overseas (24 per cent). Nearly half of Canadian domestic travellers are choosing more affordable options like road trips (48 per cent) and 1 in 5 are choosing to camp (20 per cent) to reduce their expenses.
No matter what destination Canadians are planning to trek to this summer, 60 per cent are planning to fund those trips with personal savings, though 74 per cent say they are finding it harder than ever to save money.
“Canadians have been pragmatic and resourceful as they’ve embraced a savings mentality in order to navigate a challenging economic landscape,” said Carissa Lucreziano, Vice-President, Financial Planning and Advice, CIBC. “Many are still concerned inflation will impact their summer fun despite their best efforts to not overspend.”
Top expenses Canadians are looking to better manage this summer:
- Dining out
- Entertainment
- Clothing
Polling found that more Canadians believe they could benefit from financial advice this summer than in previous years, with 26 per cent looking for ways to mitigate the cost of living, and 21 per cent seeking strategies to offset inflation.
“Nearly 60 per cent of Canadians believe they could benefit from professional financial advice to maximize their summer fun. A trusted advisor can design a personalized plan to help make the most of this summer and every other season,” Lucreziano added.
Other key poll findings:
- 55 per cent of Canadians say summer is the season they spend the most money
- 67 per cent say they are more interested in spending on experiences than physical items
- 68 per cent of Canadians say they are worried about the value of the Canadian dollar
