Sharing economy is changing how Canadians spend

Canadians, particularly millennials, are changing how and why they spend, finds a survey by Capital One.

They’re favouring experiences over ownership, so much so that 85% would rather have two years of fulfilling experiences (including travel, concerts and dining out) than upgrade from an affordable car to a luxury vehicle.

Read: Getting by in the sharing economy

Technology has enabled the sharing economy to reinvent market behaviour, facilitate closer human connections to create a “we-based” culture, and ease the sharing of goods and services between consumers.

It has also fostered a new minimalist mindset, finds Capital One, which surveyed 1,500 Canadians. That mindset extends not just to sharing cars or using AirBnB, but to bigger purchases. In fact, 46% of millennials would be open to buying a house with friends, and living in it together, to share the cost.

Technology is also changing how Canadians interact with money: 54% of people agree that using digital payments makes it easier to transact and budget monthly expenses. Further, 63% of millennials are more likely to make a purchase from a brand that enables a rating system by customers, as ratings can help bring transparency to the transaction.

Advisor’s Jessica Bruno has written about the tax impact of participating in the sharing economy.