CANADA – 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. 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.
CIBC’s Recommendations for Summer Savings:
“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,” says Jamie Golombek, Managing Director at CIBC’s Wealth Strategies Group. “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.”
