While the majority of Canadians are concerned about their financial savings, many still plan to spend an average of $6,349.28 on travel, entertainment and impulse purchases over the summer.
According to the 2014 BMO Summer Spending Survey, 61% say they are more concerned about saving money compared to this time last year. However, 77% say they will be spending either the same or more than they did in 2013.
Weekly entertainment represents the largest non-essential summer expense for Canadians, costing an average of $3,291.34 for the whole summer.
Vacations, including weekend trips out of town and longer vacations, account for 28% of total summer budgets ($1,802.40).
Impulse purchases account for one-third of Canadians’ weekly entertainment costs ($1,162.07) and 18% of total summer costs.
Seasonal consumer goods will cost Canadians $309.49, home and garden projects will cost $535.78, and big purchases will cost $410.27, accounting for 20% of the summer budget.
Canadians are conscious of the need to save money and monitor their spending, says Tony Tintinalli, regional vice-president with BMO Bank of Montreal. However, he notes there seems to be a disconnect between their goal of focusing on saving and the amount they intend to spend.
“The satisfaction of saving money can be achieved with a realistic budget,” Tintinalli explains. “Overspending on non-essential items, and not keeping track of how much one is spending throughout the summer, can lead to unpleasant surprises come the fall.”
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