How are you saving money this summer? Tweet @CIBC #fitsyourlife to share your hacks
TORONTO, June 30, 2016 /CNW/ - As Canadians kick summer into full swing, many are keeping a close watch on their wallets and plan to spend 25 per cent less than last year, according to a new poll by CIBC (TSX: CM) (NYSE: CM). Determined to reign in expenses, Canadians say they will stick closely to their budget and more than ever, look for ways to save during a time that many consider to be their most impulsive spending season.
Highlights of the 2016 CIBC Cost of Summer Poll:
- $1,346 is the average amount Canadians plan to spend on summer fun this year, including travel, dining, recreational activities and summer goods like barbecues and sports equipment. This amount is down by approximately 25 per cent from $1,766 last year
- One third (32 per cent) say they will stick very closely to their budget this summer (up from 29 per cent in 2015), and half (50 per cent) say they will somewhat stick to their budget (up from 45 per cent in 2015)
- 67 per cent of Canadians say summer is the season during which they tend to make more unplanned and impulsive spending decisions on entertainment and fun
"Summer is filled with social events, outdoor activities and family travel, and it's easy to lose sight of your spending when you're trying to make the most of the short-lived season," says Jamie Golombek, Managing Director at CIBC's Wealth Strategies Group. "So it's encouraging to see that more Canadians are trying to stay on top of their budgets this year."
Cutting back on your spending doesn't mean you have to cut back on fun: "You can stretch your dollars further with some advance planning and smart budgeting," adds Mr. Golombek. "Online tools are a great way to track your spending. You can set budgets in customized categories and create spend alerts to notify you if you exceed your budget or when you approach your credit limit."
Here are some of Mr. Golombek's personal tips for how to save money this summer
"If you travel abroad, you'll often get a better foreign exchange rate by getting your foreign cash before you leave through your financial institution. I also use my credit card points to book summer travel - not just for airfare, but for hotel rooms as well. And when renting a car, I know what coverage is already available through my credit card and save money by declining coverage I already have."
For families with children, Mr. Golombek offers additional tax planning advice: "Summer camp fees often qualify for the child care expense deduction, which can lower your after-tax cost of summer camps for the kids. Also, keep in mind that 2016 will be the last year in which you can claim the 15 per cent federal refundable Children's Fitness Credit for up to $500 of expenses and the 15 per cent non-refundable Children's Arts Credit for up to $250 of expenses - so make sure you save your receipts for tax time."
Got tips for your fellow Canadians? Tweet us how you are saving money this summer
A majority (53 per cent) of Canadians are more than ever looking for ways to save money on summer fun, the 2016 CIBC Cost of Summer Poll finds. Some of the ideas they offered include:
- Look for deals and discounts on the internet, use coupons and book early
- Attend free events, festivals and concerts
- Eat out less. Instead, barbecue and entertain friends at home
- Head outdoors to beaches and parks for a picnic or to go camping
- Go on day-trips close to home or travel within Canada
How are you saving money this summer? CIBC invites Canadians to share their personal summer savings tips on Twitter: Tweet @CIBC #fitsyourlife to share your hacks.
Key findings of the 2016 CIBC Cost of Summer Poll
Average amount Canadians plan to spend on summer fun between Canada Day and Labour Day
Season during which Canadians make more unplanned and impulsive spending decisions:
How closely Canadians stick to their household budgets in summer:
|Very closely - I stick to my household budget in summer, the same as I do throughout the year||32%||29%|
|Somewhat - I try to save ahead but find that I sometimes need to put extra costs on my credit card or dip into savings||50%||45%|
|Not at all - My household budget goes out the window in summer||6%||7%|
|What household budget?||12%||19%|
Canadians looking for ways to save on summer fun:
2016 CIBC Cost of Summer Poll Disclaimer
From June 20 to 24, a two-part online survey was conducted, with the 1st from June 20 to 21 and the 2nd from June 23 to 24. Both surveys were among 1,500 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error - which measures sampling variability - is +/- 2.5 per cent, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region Census data. Discrepancies in or between totals are due to rounding.
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
SOURCE CIBC - Consumer Research and Advice
Olga Petrycki, Director, External Communications, 416-306-9760 or [email protected]