Purchasing with cash is still king for most shoppers
TORONTO, Nov. 22, 2011 /CNW/ - With the holiday season just 32 shopping
days away, there may be a few more presents under the tree this year.
According to an RBC survey, Canadian gift-givers are planning to spend an average of $640 on gifts - up from $624 last year - and on average they will be spending $100
more than last year ($612 compared to $512) on other holiday items (entertainment, decorations, travel, etc.)
If last year's spending intentions and actual expenditures are any
indication, Canadians will be experiencing yet another post-holiday
headache, trying to pay off their bills in the New Year. In 2010,
one-third of holiday shoppers who went over budget spent an average of
$429 more than they intended - Atlantic Canadians actually overspent by
$521, the highest expenditure in the country - and ended up cutting
back on entertainment, day-to-day living expenses, credit card use and
coffee/lunch costs to make up the difference.
"Having a budget in mind before you start checking off your holiday gift
list will help ensure you're only spending what you know you can
afford. It can be easy to get carried away with the holiday spirit when
you're out shopping," advised Maria Contreras, product manager, Savings
Accounts, RBC. "The very best gift you can give to yourself and your
family is a debt-free holiday season - and a financially worry-free New
Many Canadians intend to use money in hand to do their gift-buying,
including cash (55 per cent) and debit cards (27 per cent) among their top three financing options for holiday purchases. Credit cards (37 per cent) round out the top three. Another sign that consumers are
budget-minded: only 10 per cent said they hadn't yet thought about how
to finance their holiday spending, compared to 20 per cent in 2010.
"Enjoying the holidays doesn't have to come with a big price tag
attached," added Contreras. "A little planning ahead can help you stay
within your spending limits for the holidays, as well as all year
round. Ideally, you'll not only be covering your expenses, you'll also
be saving money for your future goals. You can also use online
financial management tools such as myFinanceTracker, a great solution for setting and tracking budgets,
savings goals and spending habits."
Six Savings Tips for the Holidays and Year-Round
Curb your impulses. Count to 30 before impulse buying in a store, or wait 24 hours before
making an online shopping decision.
Pay yourself first. Make your savings plan part of your bill paying routine, just like
cable, utilities and mortgage payments.
Track your expenses. Make a list of all your expenditures over three months to see where
there are opportunities to turn spending into saving.
Keep a separate savings account. Set up an account dedicated to savings; in this way, your savings won't
get mixed in with your day-to-day cash.
Set a target date for your savings goal. Having a deadline can help you decide how much to put away and how
Visualize your savings goal. Are you saving for a vacation? A big screen TV? Keep a photo of your
dream on hand, to inspire you to continue saving.
About RBC savings and other financial advice and interactive tools
Canadians can access www.rbc.com/savingsspot for free savings advice and resources. In addition, all personal RBC online banking clients can use myFinanceTracker, a no-cost interactive financial management tool, to create and track
their budget, savings goals and spending habits. Whether Canadians want
to get more from their day-to-day banking, protect what's important, save and invest, borrow with confidence or
take care of their businesses, the RBC Advice Centre can help answer their questions. Interactive tools and calculators
provide customized information covering many facets of personal
finance. In addition, online advice videos are updated regularly to
reflect current trends and to answer the questions that are top of mind
with Canadians. With the guidance of RBC advisors who are available to
chat live, Canadians have access to free, no-obligation professional
advice about RBC products and services and personalized one-on-one
service at www.rbcadvicecentre.com.
About the RBC survey
As part of Canada's most comprehensive consumer attitudes poll, this
survey was conducted online via Ipsos Reid's national I-Say Consumer
Panel to 3,054 Canadians (453 British Columbia, 454 Alberta, 458
Saskatchewan/Manitoba, 705 Ontario, 516 Quebec, 467 Atlantic Canada).
Weighting was then employed to balance demographics and ensure that the
sample's composition reflects that of the adult population according to
Census data and to provide results intended to approximate the sample
universe. Data collection was September 26 to October 03, 2011. A
survey with an unweighted probability sample of this size and a 100 per
cent response rate would have an estimated margin of error of ±1.65
percentage points, 19 times out of 20, of what the results would have
been had the entire population of adults in Canada been polled.
Image with caption: "Canadians plan to give gifts in 2011 (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7057.jpg
Image with caption: "Canadians intend to spend more on gifts this year (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7061.jpg
Image with caption: "Canadians intend to spend more on other holiday items this year (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7059.jpg
Image with caption: "Canadians' top three choices to pay for holiday purchases (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7063.jpg
Image with caption: "To pay for their holiday purchases: cash and debit cards (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7053.jpg
Image with caption: "To pay for their holiday purchases: credit cards (CNW Group/RBC)". Image available at: http://photos.newswire.ca/images/download/20111122_C8142_PHOTO_EN_7055.jpg
For further information:
Kathy Bevan, RBC Corporate Communications, 416 974-2727, firstname.lastname@example.org
Craig Christie, RBC Corporate Communications, 416 974-8820, email@example.com