In a survey conducted for the Chartered Professional Accountants of Canada (CPA Canada), 46% of the respondents said they will spend more money than they did last summer, although very few will go into debt to fund their vacations.
The poll of more than 1000 adults was conducted Nielsen in early June and showed that 39% plan to spend the same amount as they did last year, while just 15% said they will spend less.
The survey also revealed that summer is the season when Canadians are most likely to open their wallets; 39% said their expenditures are highest during the warmer months, followed by 34% who do the bulk of their spending in the winter, 10% in the spring, and 7% in the fall. The remainder said there was either no difference in their spending habits from season to season, or that they did not know.
Respondents indicated that they would be most likely to put money towards home maintenance (including yard work and gardening costs), travel or vacation, and food this summer. Looking at vacation spending in particular, 40% expect to spend more than they did last year, 36% believe they will spend the same amount, and 23% are cutting back.
Asked how they will pay for their holidays (respondents could give more than one response), 77% plant to tap into their general savings, 54% will use savings that were set aside specifically for a vacation, 22% are using a portion of their tax refund, and only 8% are borrowing money.
“It’s great that so many of the respondents are using avenues other than debt to help cover the costs associated with their vacations,” says Cairine Wilson, vice-president of corporate citizenship at CPA Canada. “Not only is it encouraging from a money management perspective, but it also allows the vacationers to relax more and worry less about the costs.”
By: Andrew Rickard