-- TD Canada Trust Summer Spending Survey finds three-quarters of Ontarians admit they are more relaxed about spending and saving in the summer months --
TORONTO, July 13, 2011 /CNW/ - Pointing their fingers at the endorphins from the summer sun, 67% of Ontarians say the warm, sunny weather is making them feel happier and more willing to spend money, according to a new survey by TD Canada Trust.
The TD Canada Trust Summer Spending Survey found 74% of Ontarians admit they are more relaxed with their spending and saving habits during the warmer season. In fact, many Ontarians admit they have let their bill payments (51%), budgeting (40%) and saving (38%) habits slip by the wayside as they have fun in the sun this year.
"Summer is a great time to relax and have fun with friends, but it doesn't mean you should take a vacation from your financial responsibilities," says Raymond Chun, Senior Vice President, TD Canada Trust. "If you take a little time to plan ahead and tweak your budget in preparation for your summer spending, you can make the most of the warmer weather without compromising your savings plan."
Besides the summer sun, Ontarians attribute their lax attitudes towards their personal finance to the fact that there are so many activities to enjoy in the summer they figure they'll make up the money in the colder months (63%). Six-in-ten also attribute their splurges to eating and drinking out more with friends (63%) and taking more vacations (62%).
"Summer vacations can certainly take a toll on your wallet. If you think you've been too carefree with your spending, there are simple things you can do to get your finances under control without compromising on summer fun so that you're in good financial shape by the end of the season," says Chun.
Chun offers his advice on how Ontarians can enjoy this summer without compromising their savings plan:
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Automate your financial responsibilities - Set up pre-authorized transfers to your regular bills and minimum
credit card repayments. That way you don't have to worry about interest
and fees incurred on forgotten bills while you're out enjoying the
summer sun.
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Revisit your budget - Calculate how much money you earn each month then subtract your
expenses, like rent or mortgage repayments, food, utilities, insurance
and credit card bills, to understand how much you really have left
over. Subtract the amount you want to save every month, and only then
do you have a true picture of what you have left for discretionary
spending. "Many Canadians find their food and entertainment bills are
higher in the summer, because they're out more with friends. If this is
the case, you should revisit your budget to cut down on spending in
other areas to make up the difference, and not cut into your savings or
take on debt," says Chun.
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Don't get carried away with summer spending - Look at ways to cut down on unnecessary expenses, but don't deprive
yourself or it will be a tough budget to follow. Invite friends over
for a backyard barbeque instead of frequenting restaurant patios
regularly after work. Canada's summers are beautiful so it's tempting
to splurge on summer accessories, but remember you may only get another
two months out of a new pair of sandals or summer dress before the
cooler weather starts rolling in.
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Get any debts under control - Review your unpaid bills and debt obligations. If you're low on cash
and can't make all your payments then pay the minimum required. High
interest debts like credit cards should take priority. At the end of
the summer if you're still struggling with your repayments, then speak
to your bank about ways to consolidate and manage your debt.
- Start planning now for your next seasonal splurge - While enjoying the summer months can be fun, getting yourself into serious credit card debt is not. You need to break the cycle on how you pay for summer activities like vacations and eating out. Start putting aside money in advance for next year's holidays.
What else falls by the wayside in the summer?
Ontarians are most likely in the country to admit they are also more lax in the summer when it comes to exercising (60% versus 55% nationally), and they are among the most likely in the country to admit they are more likely to call in sick to work even if they feel fine (11% versus 9% nationally). More than half say they tend to slack off when it comes to keeping in touch with family (58%), keeping their homes tidy (56%) and eating healthily (52%).
About the TD Canada Trust 2011 Summer Spending Survey
The TD Canada Trust 2011 Summer Spending Survey polled a representative sample of 1,000 Canadians through a custom, online survey; 250 Ontario residents were surveyed. The survey was conducted by Environics Research Group between June 21-26, 2011.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches - most open 8 'til late and many now open Sunday. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.