Canadians cool down summer spending as cost pressures heat up: TD survey

More than 1 in 3 Canadians (35%) plan to spend less this summer, while 44% say fuel costs are forcing travel cutbacks

TORONTO, May 26, 2026 /CNW/ - This summer's top trend? Splurging is out and saving is in. A new TD survey shows Canadians are rethinking summer spending in 2026 as ongoing cost-of-living pressures, including rising fuel prices, continue to shape household budgets and travel plans.

Key findings from this TD survey:

• 35% of Canadians plan to spend less this summer
• 44% say higher fuel costs are influencing travel decisions
• 24% of Gen Z Canadians – the highest among all generations – plan to increase their summer spending, driven largely by social pressure
• 79% of Canadians plan to support local or Canadian businesses, with 48% saying it's a stronger priority than last summer.

How Canadians are adjusting their summer budgets

The survey highlights how persistent cost pressures are pushing Canadians to make more deliberate financial trade-offs. Among those cutting back this summer, 40% cite higher transportation costs as a key factor, while 62% are redirecting spending towards everyday needs, such as groceries, fuel and housing.

Canadians are also adapting in creative ways by:

• Redeeming loyalty points (44%)
• Choosing lower-cost alternatives such as DIY options or purchasing second-hand items (36%) 

"Summer comes with a lot of expectations and spending can add up quickly," said Sumaiya Bhula, Senior Manager, Saving and Investing Journey at TD. "Simple steps like setting a realistic budget, tracking expenses and prioritizing what matters most can help Canadians stay in control while still enjoying the season."

Sky-high fuel prices reshape summer travel plans

Travel is one of the most prominent areas where Canadians are feeling squeezed.

Amid crude oil supply constraints, 44% of Canadians polled say fuel and aviation costs are affecting their summer travel decisions. Among those planning to travel, 61% say they are actively reducing travel costs, signaling a shift in how some Canadians are approaching their summer trips.

The survey also reveals a gap in financial preparedness:

• 46% of Canadian travellers don't intend to purchase travel insurance this summer
• 29% say they can only cover up to $300 in emergency travel costs without insurance

"When travel budgets are already stretched, skipping travel insurance might feel like an easy place to save, but disruptions like a trip cancellation or unexpected medical emergency can quickly become costly," said Patricia Foley, Associate Vice President, Life, Health & Credit Protection at TD. "Having the right travel insurance coverage could help protect your finances and your trip, allowing you to travel with greater confidence."

Buy Canadian sentiment remains strong

As Canadians shift their summer travel plans, findings indicate that many are becoming more intentional with their vacation destinations and buying habits:

• 76% of Canadians planning to travel intend to stay within Canada, with 55% exploring their own province and 41% travelling elsewhere domestically
• 79% plan to support local or Canadian businesses this summer 
• 48% say their desire to support local businesses is stronger than last year 

Canadians are also supporting local by buying Canadian‑made products (48%), dining locally (41%) and shopping at independent retailers (32%).

"Local businesses are the heartbeat of our communities and it's encouraging to see Canadians choosing to explore their own backyards," said Julia Kelly, Vice President, Small Business Banking at TD. "Shifting even a portion of summer spending to local businesses helps sustain communities, while also creating meaningful experiences close to home and supporting the entrepreneurs who drive our local economies."

Why Gen Z is spending differently this summer

Younger Canadians are taking a distinctly different approach to their summer budgeting. Gen Z Canadians are the most likely generation to increase spending this summer, with nearly one-in-four (24%) planning to spend more.

Meanwhile, 32% of Gen Z say social pressure is influencing their summer spending decisions, more than double the national average (14%). Among this group, the top spending categories include:

• FOMO-driven experiences (30%)
• Dining out at trendy restaurants (29%)
• Shareable or photo-worthy activities (28%)
• Travel (24%)
• Events like concerts, festivals or sporting events (22%)

At the same time, Gen Z is also drawing clearer boundaries. Among those invited to summer weddings, nearly two-thirds (64%) say they've already declined or are being more selective, far exceeding the general population (48%). 

"Social media can sometimes make it feel like you have to say yes to every experience," said Jeet Dhillon, Senior Portfolio Manager, TD Wealth. "Having a clear sense of what you value – and what fits your budget – can make it easier to enjoy summer without letting impulse or pressure derail your financial plans."

Top tips to help manage summer spending

          1. How can I cut back on summer spending without missing out?

One way to cut summer spending without missing out is to prioritize one or two experiences and scale back elsewhere. According to this TD survey, 35% of Canadians plan to spend less this summer, so many are already tightening their approach. Using loyalty points, setting limits in advance, booking ahead to avoid last-minute expenses and choosing lower-cost alternatives – like day trips instead of extended travel – can help you stay on budget while still enjoying the season.

          2.  What's the simplest way to manage a summer budget? 

Begin by separating essential costs from discretionary spending. TD data shows that 62% of Canadians are redirecting funds toward essentials like groceries, fuel and housing. Once essentials are covered, set a clear weekly limit for non-essentials and track spending consistently. Small, regular check-ins can provide greater insight into your financial picture and help prevent costs from quietly adding up over the season.

          3.  How can I still afford to travel this summer? 

This TD survey found that 61% of Canadians intending to travel are reducing costs when planning their vacations, signaling a more budget-conscious approach. Consider staying within Canada, travelling during off-peak times, shortening your trip or choosing more affordable accommodations to help keep travel costs more manageable.

          4.  Is skipping travel insurance a smart way to save money?

It may seem like an easy cost to cut, but it could carry real risk. This TD survey shows that 29% of Canadians surveyed could only cover up to $300 in emergency travel expenses if they didn't have adequate insurance coverage. Emergency medical costs or travel cancellations or interruptions can quickly add up, making insurance an important safeguard to help prevent significant out-of-pocket costs. Before travelling, Canadians should take time to review what coverage they already have through their employer, credit card or existing policy, to understand where gaps may exist and consider whether additional coverage makes sense for the trip.

          5.  What's an easy way to keep saving during the summer, even when costs are high? 

Focus on consistency over contribution size. Even small contributions made on a regular basis can make a difference when expenses are elevated. With many Canadians prioritizing essentials this summer, building saving into your routine by setting aside modest amounts (even as small as $25) and automating contributions where possible, can help maintain momentum while keeping your day-to-day budget manageable.

About the TD Survey 

This TD survey, conducted using the Leger Opinion panel, ran from April 17-27, 2026, with a nationally representative sample of 1,500 Canadian adults. The results have been weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.

About TD Bank Group 

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on January 31, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.

SOURCE TD Bank Group

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