Fifty-six per cent of Canadians expect their expenditures to rise this summer compared to last summer, according to a new survey conducted for the Chartered Professional Accountants of Canada (CPA Canada).
In terms of household spending, 30 per cent of those surveyed say their expenditures will increase between $500 to under $2,000 this summer compared to summer 2017. Meanwhile, 45 per cent of respondents say they have less money this year compared to the same time last year after paying for their monthly household essentials.
The survey revealed that 62 per cent of respondents are spending more on transportation fuel costs this summer compared to last and 50 per cent say their food costs are higher. Home energy costs have risen for 37 per cent of those surveyed.
Stressful season for many
Thirty-eight per cent of those surveyed say they find it stressful to pay for their expenditures during the summer months.
“With spending anticipated to heat up over the summer, the need for individuals and families to effectively track their expenditures is amplified, especially for those who call the season stressful when it comes to money management,” says Doretta Thompson, Director of Corporate Citizenship, CPA Canada. “This is especially true since a significant number of survey respondents say they are entering this summer with less money than at the same period a year ago. For many, tough decisions lie ahead on how to best enjoy the summer months but not overspend.”
Summer vacation spending
With respect to summer vacations, two thirds of respondents say they are planning a vacation this summer, with 21 per cent revealing they expect to spend less than $1,000. One quarter plan to spend $1,000 to less than $2,000 and 20 per cent expect to spend $2,000 to less than $3,000 while another 19 per cent plan to spend $3,000 or more, the survey found.
Fifty six per cent of those planning to take a vacation say they will use their general savings to pay for their holidays; 40 per cent plan to use savings put aside especially for a vacation and 20 per cent are planning to borrow money to finance their trip.