TORONTO, ONTARIO--(Marketwired - Jun 6, 2013) - According to the 2013 BMO Summer Spending Report released today, while this summer has a higher degree of spending intent, the vast majority of Canadians will be looking for ways to save money and maximize their dollar.
The report, conducted by Pollara, is the second in a summer series; it is designed to determine spending habits of Canadians during the summer months and how they plan to make the most of their spending. Overall, the survey found Canadians expect to spend an average of $3,978 on non-essential expenses in addition approximately $3,000 on travel. Furthermore:
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While the majority of Canadians (56 per cent) expect to spend the same amount this summer as last summer, 26 per cent expect to increase their expenditures compared to 18 per cent who expect to spend less - resulting in an 8 point overall jump in summer spending
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Spending on non-essential items include dining out and socializing ($1,404) and entertainment ($975), including movies, sporting events and other summer events
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Impulse spending will account for another $123 per week on average, or $1,599 over the course of the summer
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In addition, a previous BMO Summer Travel Survey indicated Canadians who plan to travel expect to spend an average of $3,078 on travel
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Increased spending aside, the majority (79 per cent) will look for ways to save and maximize the value of their dollar over the summer months
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Furthermore, six-in-ten (59 per cent) plan to create a budget to help them manage summertime expenses
"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," said Su McVey, Vice President, BMO Bank of Montreal. "That said, the numbers show that 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 out cost-effective local events can really help Canadians stretch the value of their dollar."
Canadians to Offset Summer Spending by Leveraging $400 in Rewards
More than two-thirds (70 per cent) expect to cash in their reward points this summer, with one-third (29 per cent) planning to spend their points on airfare. As a typical amount, Canadians estimate they have the equivalent of $400 in points accumulated.
"Reward programs provide a practical and convenient way for Canadians to take advantage of a broad array of redemption options and make the most of their summer without breaking the bank," said Su McVey, Vice President, BMO Bank of Montreal.