Canadians are spending nearly 30 per cent more on summer activities this year -- and the vast majority say worries about the bigger summer budget are putting a damper on their summer fun.
Canadians expect to spend an average of about $1,900 on summer activities this year, 27 per cent higher than last year's average of $1,500. Three-quarters of respondents to the Canadian Imperial Bank of Commerce (CIBC) study blamed inflation as the leading cause.
Accoprding to the survey, summer spending typically includes:
- Everyday expenses like groceries, gas, etc.
- Dining out
- Travel
- Renovations and landscaping
- Home or cottage expenses
And all that extra spending is causing worry: 80 per cent of Canadians surveyed say they're concerned rising inflation will hurt their summer fun.
According to Statistics Canada, the country's inflation rate rose to 8.1 per cent in June, the highest it's been in 39 years.
"Inflation is a hot topic this summer, and it may seem like the cost of living is rising with the temperature, which is why it's important for people to stay on top of their spending," said Carissa Lucreziano, vice president of Financial and Investment Advice at CIBC. "Many people head into the summer months with every intention of sticking to a budget, but can find it difficult to follow," she said.
As much as 72 per cent of Canadians said they are "cautious" about what activities they plan to enjoy this summer.
Most Canadians (62 per cent) said they find it "harder than ever" to save money, while 58 per cent feel they have fewer funds in their bank account by the end of the month compared to previous years.
HOW TO SAVE MORE AMID INFLATION?
Quebec's construction holiday is well underway, and with nearly 182,000 workers taking time off, many Quebecers are now trying to find a balance between saving and enjoying this long-awaited summer vacation.
Robert Soroka, a marketing professor at Concordia University, has a few tips to stem the inflation rate.
After rising to 2.5 per cent in July, up from 0.25 per cent in February, Quebecers who were barely making their ends meet before now need to make significant changes to their spending habits, Soroka suggested.
Consider shopping for generic products as opposed to brand names, like President's Choice or No Name goods at a Provigo supermarket, he said.
"They are typically 20 to 30 per cent cheaper — and not because the quality is less, but because of lower marketing costs," the professor explained.
According to the study, almost a third of Canadians plan to switch from using brand-name products to lower-cost options to reduce the impact of inflation this summer.
Also, focus on discount merchandisers like Walmart instead of big-box retailers. However, Soroka warned that consumers should avoid buying too much in bulk and note that not all products are cheaper in those stores.
"When in Costco, only buy things on sale and don't try to stock up too much," he added.
The CIBC survey reported that 36 per cent of Canadians plan to collect coupons or actively look for deals.
Other saving tips include delaying non-urgent purchases to wait for a lower price, and consulting with an investment advisor to figure out the most appropriate long-term investment strategy.
The bigger summer budget isn't solely due to higher inflation, said Soroka -- after two pandemic summers, people are ready to travel and enjoy themselves.
The demand for air travel is indeed at its peak since the COVID-19 pandemic began, which partially led to chaos at the Montreal-Trudeau Airport this month.
"The fact that we've all been cooped up for the last couple of years has contributed to the inclination for Canadians to 'catch up,'" he said. "Particularly those people who have kids, who feel the guilt that they weren't able to provide their children with the opportunities that they grew up with."
