Feb 2, 2017
Pattie Lovett-Reid: Canadians overspent during the holidays — again
Canadians once again overspent this past holiday season and did so in much higher numbers than they did last year – 51 per cent versus 41 per cent – according to RBC’s post-holiday spending poll.
In actual dollars, the average amount rose to $403. compared to $397 in 2015. If there is a silver lining here over-spenders have entered 2017 with plans to cut down on their expenses and get their savings on track. Forty-two per cent say they will cut back on entertainment and 33 per cent will be spending less money on coffee and eating out.
Every year, the bills roll in and every year we say we are going to do things differently. Sometime it is a wakeup call and when something hurts enough change will then happen. The optimist in me says maybe things hurt enough and will be different next year given that 36 per cent say they will set aside some money on a regular basis, while 29 per cent will be creating a budget earlier in the year which will include savings for holiday season/gift expenses.
The RBC poll found that more women than men overspent and the millennials were the largest group of over-spenders. Across the country, the largest spenders lived in the Prairies 63 per cent, over half 54 per cent of Ontarians acknowledged over-spending, as did 49 per cent of Quebecers and 47 per cent of those living in Atlantic Canada, Alberta and B.C. respectively.
Tips to get ahead for the 2017 season:
1) Set up a savings account now for expenses down the road. The holiday season will be here before you know it. Set it a separate account and don’t touch it.
2) Track you expenses. You may have spent on people that you didn’t need to. No one want you going into debt to buy them a gift. Be honest and sincere and look for other ways to celebrate.
3) Visualize your savings goals. Write them down and take corrective action throughout the year if you get off track.
The key for consumers – spend thoughtfully, not mindlessly, in 2017.
