TORONTO, ONTARIO--(Marketwired - June 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:
- 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
- Spending on non-essential items include dining out and socializing ($1,404) and entertainment ($975), including movies, sporting events and other summer events
- Impulse spending will account for another $123 per week on average, or $1,599 over the course of the summer
- In addition, a previous BMO Summer Travel Survey indicated Canadians who plan to travel expect to spend an average of $3,078 on travel
- 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
- 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.
Ms. McVey added that BMO is helping Canadians make the most of their summer spending by offering up to $200 in cash when you open a chequing and savings account, and 500 bonus AIR MILES reward miles for those who sign up for a no-fee BMO AIR MILES credit card.
Summer of Thrift to Continue for Many Canadians
The survey also showed that half (49 per cent) of Canadians have had to cut back on summertime spending in recent years, and plan to continue the trend this summer by taking the following measures:
- Socializing at home rather than going out (85 per cent)
- Staying in to watch a movie (85 per cent)
- Attending free local events (74 per cent)
- Taking a "staycation" (58 per cent)
- Furthermore, the most common areas Canadians have been cutting back recently include vacations (60 per cent), big-ticket items (54 per cent), gadgets/electronics (52 per cent) and entertainment (51 per cent)
BMO offers the following tips to help Canadians make the 'BMOst of Summer':
- Redeem points to offset costs of your summer activities. If you have a flexible program like the BMO Rewards or the AIR MILES Reward Program, you can redeem reward currency for fun summer merchandise such as sporting or camping gear, passes to local attractions and more.
- Build and review a summer budget. Building a budget and reviewing it on a regular basis will help keep spending and savings on track and in line. Using an online budgeting tool such as BMO MoneyLogic , that's free for BMO customers, is an easy way to track summer finances in real-time.
- Shop around for a card that rewards you. Credit cards are a great payment option because of their convenience, security and loyalty reward features. This summer, get a no fee BMO AIR MILES MasterCard and earn 500 Bonus AIR MILES reward miles.
The survey results cited in the BMO Summer Spending Report are from online interviews with a random sample of 1,513 Canadians 18 years of age and over, conducted by Pollara between May 23 and May 27, 2013. A probability sample of this size would yield results accurate to ± 2.5 per cent, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $555 billion as at April 30, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
