Summertime and the living is … financially challenging!

31% of Canadians are facing a stressful summer new poll reveals

Summertime and the living is … financially challenging!
Steve Randall

The warm, sunny weather of a Canadian summer brings new opportunities for fun, but for many it will lead to stress about finances.

A new poll from CPA Canada reveals that almost one third of respondents anticipate stress related to spending this summer. Unexpected (39%) and large (22%) expenditures were top worries, as well as existing debt (21%), and budgeting (19%).

Although the recent Consumer Price Index may suggest otherwise, 45% of Canadians are expecting food costs to remain the same this summer compared to 2018. Many also expect to spend the same on entertainment (57%) and home maintenance (44%).

But 38% are expecting higher costs for vacations and travel with average expenditure of $3,226 (although 12% will spend more than $5,000). With gas prices and other transportation costs rising, this is a major concern for 57% of respondents.

"While about a third of respondents report no summer spending stress, many feel they will have less money this year than last," says Doretta Thompson, CPA Canada's Financial Literacy Leader. "A significant number of Canadians are worried about how they will cover summer expenses.”

The cost of summer travel is exacerbated by rising gas prices and a new report from the Angus Reid Institute found that most Canadians have noticed an increase in the cost of gas where they live and one third of those said they are struggling with the extra cost, which may harm their ability to afford necessities.

Image credit and source: Angus Reid Institute

Funding vacations

Of the 59% who plan to vacation this summer, most will dip into their general savings and 30% will use savings specifically set aside for holidays. Of the 16% planning to borrow money, most will use a credit card (79%) and/or line of credit (28%).