New survey finds only 12 per cent of Canadians associate summer with saving
TORONTO, June 16, 2015 /CNW/ - As temperatures rise, Canadians don't seem to be sweating their finances. According to a recent survey by Tangerine*, over half of the country (52 per cent) adopts a more carefree attitude towards spending in the summer, and one in three Canadians (34 per cent) admit to spending more during the summer months.
During patio season it should come as no surprise that "food, drink and entertainment" were cited as the number one reason for increased summer spending (67 per cent), followed by weekend trips (42 per cent) and vacations (37 per cent). And when asked if this spending surge impacted the amount they were able to save during summer, a resounding 83 per cent of Canadians answered "yes".
"After a long, cold winter, it's understandable that many of us want to go out and enjoy ourselves, but Canadians should avoid putting their budget on an extended summer vacation," says Silvio Stroescu, VP and Head of Savings and Investments at Tangerine. "Much like applying sunscreen and regularly hydrating, making saving part of your summer routine can help ensure your savings don't take a vacation when you do."
CANADIAN SAVINGS GO ON VACATION
Nine out of ten Canadians (88 per cent) have no plans to spend less this summer. In fact, only 12 per cent of us associate summer with saving— a far cry from the 47 per cent who view winter as saving season— and one in five Canadians say they're likely to book this year's summer vacation by using credit or going into debt.
Millennials (ages 18-34) are most likely to put their budget on ice over the summer, with 62 per cent adopting a more carefree attitude towards spending; versus 50 per cent for Canadians aged 35-54. Over one-quarter of millennials (27 percent) also say they're likely to use credit or go into debt to book a summer vacation.
HOW TO COOL YOUR SPENDING
According to the survey, one in three Canadians (33 per cent) don't contribute to their savings over the summer. For that reason, Preet Banerjee, renowned personal finance expert and contributor to Tangerine's Forward Thinking blog, recommends that Canadians set up an Automatic Savings Program (ASP).
"Setting up an ASP doesn't mean you can't have summer fun. It simply means you'll be paying yourself first – one of the most important principles of saving – so you can save money year-round regardless of what season it is," explains Banerjee.
From May 14 – 15, 2015, an online survey was conducted among 1,509 randomly selected Canadian adults age 18+, who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to age, gender and region Census data to ensure a representative sample of the adult Canadian population. Discrepancies in or between totals are due to rounding.
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With more than 1.9 million clients and close to $40 billion in total assets, we are Canada's leading direct bank. Tangerine offers flexible and accessible banking, innovative products and services, fair fees, and award-winning client service. From chequing and savings accounts, GICs, RSPs, TFSAs, mortgages and mutual funds, Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our 24/7 contact centres and Café locations. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates as a wholly-owned subsidiary.
Tangerine is a trademark of the Bank of Nova Scotia, used under license.
Forward Banking is a trademark of Tangerine Bank.
Image with caption: "Summer is spending season for most Canadians (CNW Group/Tangerine)". Image available at: http://photos.newswire.ca/images/download/20150616_C5652_PHOTO_EN_18130.jpg
For further information: Cayley Kochel, Tangerine, 647-462-3421, [email protected]