Inflation forces majority to reconsider travel and leisure budgets
Canadians are adjusting their summer spending habits due to the increasing cost of living, with 77 per cent actively looking for ways to save, according to a recent Canadian Imperial Bank of Commerce (CIBC) poll.
Half of Canadians identify summer as the reason they spend the most, but they have started adopting a more frugal approach. Budget-consciousness is evident among those planning to travel, with 62 per cent taking a careful approach to their trip expenses. Around 40 per cent of these travelers plan to spend less than $2,000 on their journeys.
Some 60 per cent of Canadians intend to use personal savings to fund their trips. To save money, 67 per cent are opting for domestic vacations, compared to 28 per cent considering trips to the United States and 24 per cent looking at overseas destinations. Popular cost-saving travel options include road trips and camping.
However, the fact remains that 74 per cent find saving money more challenging than ever.
"Canadians have been pragmatic and resourceful as they've embraced a savings mentality in order to navigate a challenging economic landscape," said Carissa Lucreziano, CIBC vice president of financial planning and advice. "Many are still concerned inflation will impact their summer fun despite their best efforts to not overspend."
Key areas where Canadians are seeking to manage expenses include dining out, entertainment, and clothing. The poll indicates that 26 per cent of Canadians are seeking financial advice to mitigate the cost of living, while 21 per cent are looking for strategies to counteract inflation.
"Nearly 60 per cent of Canadians believe they could benefit from professional financial advice to maximize their summer fun. A trusted advisor can design a personalized plan to help make the most of this summer and every other season," Lucreziano said.
