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June 07, 2021

Summer spending pushes to a higher degree

Summer temperatures will soon be rising and so will spending.

With the kids out of school and families embarking on day trips, weekends away, vacations, entertainment and dining out, expenses start to heat up.

According to a new report by BMO Bank of Montreal, Canadians anticipate spending a little more over the summer months but they'll be looking for ways to keep costs down.

Canadians expect to spend an average of $3,978 on non-essential expenses and about another $3,000 on summer travel.

While 56 per cent expect to spend approximately the same as last year; 26 per cent are planning on spending a little bit more; and 18 per cent hope to trim their summer expenses overall.

All in all, it translates into an eight-point rise in summer spending.

Su McVey, Vice President, BMO Bank of Montreal, says, "During the summer, social calendars begin to fill up with day-to-day plans, weekend trips and vacations, which over the course of the season can add up significantly from a financial standpoint.

"That said, the numbers show Canadians are looking for ways to make the most of their summer spending. Looking for savings by leveraging rewards, cutting back on expenses or searching for cost-effective local events can really help Canadians stretch the value of their dollar."

Our family usually makes several trips to the zoo which can add up financially. This year, we decided to go for a zoo membership which, even just going regularly over the summer months, translates into significant savings rather than paying per visit.

Some of the things Canadians spend their hard-earned money on over the summer include dining out and socializing ($1.404); entertainment ($975); impulse spending ($1,599); and travel ($3,078).

The majority of Canadians polled (79 per cent) are expecting to look for ways to save and maximize the value of their dollar over the summer holidays; while 59 per cent hope to create a budget to help manage the extra summertime expenses.

The study also found that people are looking at ways to trim the added expenses by taking advantage of rewards programs; by opting to socialize at home instead of going out; by watching movies at home; by attending free local events; by taking a "staycation"; and by cutting back on big ticket items.

Of course, there's always the option to kick back and relax in the comfort of your backyard. Just fill up the inflatable pool, set your lawn chair beside it, grab a cold beverage and indulge.

By Donna Donaldson, MSN Money

Do you plan on trimming your summer expenses this year? What are some of your plans for inexpensive summer enjoyment?




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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

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The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...