Compromising on Quality for Price is Costing Canadians in the Long Run

Canadians share their best 'Money Hacks' to be frugal and to help meet financial goals

TORONTO, Nov. 2, 2015 /CNW/ - Just how far will Canadians go to get a deal? Is it possible to be frugal without compromising on quality? To explore this important topic in personal finance health, Credit Canada Debt Solutions, in partnership with Capital One Canada, launched a Twitter contest to gather Canadians' most extreme 'cheap or frugal' spending stories. Many learned the hard way that choosing the least expensive option sometimes comes at a cost, while being frugal tends to pay dividends.

The contest, which asked Canadians to share stories about what they learned from good and bad financial decisions, was held in advance of the ninth annual Credit Education Week, which runs from November 9-13 across the country.

Many Canadians shared that, while attempting to stretch their dollars, they were tempted by bargains that may not have been the best financial decisions:

  • "We didn't do our homework when we picked our roofer. One year later they were no more. So much for a warranty."
  • "Being cheap has caused us to replace our kitchen chairs multiple times! It's embarrassing when a chair breaks when you sit on it or worse when a guest sits down!"
  • "My ex put [a] car I bought in his name so I could save taxes. He left with the car."

"Many of Canadians' stories show that choosing the least expensive option for merchandise or services does not necessarily mean saving money. There is a big difference between being cheap and being frugal and that difference can help Canadians make more positive financial decisions," said Laurie Campbell, CEO of Credit Canada Debt Solutions. "Credit Canada is dedicated to helping Canadians spend smartly by providing financial education and resources that help them reach their financial goals."

Frugal Canadians' simple savings approaches include:

  • "I quit buying coffee every day & started making my own which allowed me to put almost $1000 in a tfsa!"
  • "Audit your contracts/bills (i.e. cell, water) once a year and shop around."
  • "Buying store brand vs name brand saves one money in the long run & is just as good."

"My role as Canada's Financial Literacy Leader is to foster collaboration in financial literacy and that's why I am very excited to see Capital One and Credit Canada Debt Solutions working together to raise awareness about how Canadians can be wiser in how they spend," said Jane Rooney.  "Sharing stories about the difference between being cheap versus frugal is a great way for people to learn from each other."

Credit Canada Debt Solutions and Capital One Canada offer the following 'Money Hacks', based on contest participant stories, on how Canadians can save money by living frugally without compromising on quality:

  • Avoid eating out and buying specialty coffees during the workday.
  • Buy generic store brands over brand names at a fraction of the price.
  • Take advantage of coupons with deals and discount codes when possible.
  • Consider using mobile shopping apps to price match or find deals that will save you money.
  • Remember that sometimes it's worth paying a little extra money for quality items when buying outerwear, clothing and footwear that may last longer and cost less in the long run. 

"As a company with deep analytical heritage, we know it's important to focus on why people do what they do when it comes to their money," said, Brent Reynolds, Vice President of Marketing and Analytics from Capital One Canada. "When we understand why Canadians follow certain behaviours when they spend, we can help our customers be more thoughtful and purposeful with their money and better support their financial goals."

This year's Credit Education Week is focused on the theme of 'Cheap vs. Frugal', with a number of events, from workshops to contests, across the country aimed at addressing how Canadians can make responsible financial decisions. Visit www.cewc.ca to learn more.

About Twitter Contest
To collect Canadians' top Cheap and Frugal personal stories, from September 21, 2015October 23, 2015, Credit Canada Debt Solutions and Capital One launched an online Twitter contest to engage Canadians.

About Credit Canada Debt Solutions
Credit Canada Debt Solutions is a non-profit charitable service that has assisted thousands of people with credit counselling and debt management programs since 1966. Credit Canada Debt Solutions is a member of the Ontario Association of Credit Counselling Services and a Charter Member of Canadian Association of Credit Counselling Services.

About Capital One
With offices in Toronto and Montreal, Capital One has offered Canadian consumers a range of competitive MasterCard credit cards since 1996, and now includes the Aspire suite of rewards cards which are regularly cited by leading rewards experts for the great value they offer consumers.  Capital One Bank (Canada Branch) is an authorized foreign bank branch of Capital One Bank (USA), N.A, a subsidiary of Capital One Financial Corporation of McLean, Virginia (NYSE: COF). Capital One believes in empowering Canadians to take control of their finances through programs and resources like Understanding-Credit.caCredit Education Week Canada, and the Capital One Financial Education Challenge.

SOURCE Capital One Canada

For further information: Media Contacts: Laurie Campbell, Credit Canada Debt Solutions, 416‑228‑2526, lcampbell@creditcanada.com; Andrew Clarke, Capital One, 416‑549‑2930, andrew.clarke@capitalone.com


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