A BMO summer spending study released today reveals that 43 per cent of Canadians dedicated the majority of their disposable income over the summer to 'staycations' and other leisure activities, including concerts, sporting events or a night at the movies.
In fact, due to the previous economic downturn, staycations have become so popular that the term was included among 2,000 other new words added to the latest edition of the Oxford English Dictionary, released last week.
"With most of us trying to cut back on our expenses, the 'staycation' trend has become very appealing," says David Heatherly, vice-president, payment products, BMO Bank of Montreal. "However, there are ways we can cut costs without sacrificing the amount we spend on holidays by making a few simple adjustments to our saving techniques and day-to-day spending habits."
Heatherly notes that one way to achieve these goals is by working with a financial expert to build a monthly budget and identify areas to maximize savings while scaling back unnecessary spending.
"By setting up an automatic savings plan you can ensure that every time you get paid, you pay yourself. This can be as simple as transferring $50 each week to a high-interest savings account, which can add up to $2,600 plus interest in just one year," added Heatherly.
Another way for Canadians to maximize savings is to reduce discretionary spending. According to the survey, nearly half (49 per cent) of Canadians claim that they spent their disposable cash on lunches and dinners out, while another 20 per cent spent it on morning coffee, lattes or tea.
"Reducing these types of expenses and putting an automatic savings plan together can mean the difference between another family staycation or lying poolside in the Caribbean."
Additional survey findings:
-- Older Canadians are more likely to spend money on 'staycations' (47 per cent), while younger Canadians spend it on leisure activities (57 per cent)
-- Those living in the Prairies are more likely to spend most of their disposable income during the summer going to restaurants, nightclubs/bars (38 per cent) compared to Albertans (25 per cent)
-- Men are more likely to spend most of their disposable income on going out to restaurants, nightclubs and bars than women (38 per cent vs. 30 per cent)
The Leger Marketing survey was completed online from Aug.2 to Aug. 4, with a sample of 1,522 Canadians, 18 years of age or older. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20.
