Canadians will splurge this summer

This summer Canadians expect to spend an average of $3,978 on non-essential expenses, in addition to approximately $3,000 on travel, finds the 2013 BMO Summer Spending Report.

Read: Q1 consumer spending up 3.31%

Other highlights include:

• While the majority of Canadians (56%) expect to spend the same amount this summer as last summer, 26% expect to increase their expenditures compared to 18% who expect to spend less — resulting in an 8 point overall jump in summer spending
• Spending on non-essential items include dining out and socializing ($1,404) and entertainment ($975), including movies, sporting events and other summer events
• Impulse spending will account for another $123 per week on average, or $1,599 over the course of the summer
• In addition, a previous BMO Summer Travel Survey indicated Canadians who plan to travel expect to spend an average of $3,078 on travel
• The majority (79%) will look for ways to save and maximize the value of their dollar over the summer months
• Furthermore, six-in-ten (59%) plan to create a budget to help them manage summertime expenses

Read: More spending power for Canada’s youth: BMO

The survey also showed that half (49%) of Canadians have had to cut back on summertime spending in recent years, and plan to continue the trend this summer by taking the following measures:

• Socializing at home rather than going out (85%)
• Staying in to watch a movie (85%)
• Attending free local events (74%)
• Taking a “staycation” (58%)
• Furthermore, the most common areas Canadians have been cutting back recently include vacations (60%), big-ticket items (54%), gadgets/electronics (52%) and entertainment (51%)

Read: Consumer confidence sinks

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.