More than one-third (36%) of Canadian shoppers went over budget by an average of $459 during the 2019 holiday season, up from $384 the previous year. Men outpaced women $544 vs. $372 and Canadians aged 34-55 overspent the most ($531), according to an annual RBC post-holiday poll.
The good news is that one-third (32%) have already paid off their extra holiday bills. The remaining over-spenders plan to cover those expenses in a number of ways, including: spending less on day-to-day living expenses (25%) and cutting back on things like entertainment, lunch and coffee costs (24%).
Skip little extras to help boost savings
"Every dollar counts, whether you make a conscious decision to save it or simply not spend it," says Niranjan Vivekanandan, vice-president, Term Investments & Savings, RBC. "Skipping little extras can add up in a big way – you don't have to make huge sacrifices to get your finances on track and build your savings.
“We're seeing Canadians adopt healthy financial habits that not only help them pay down bills, but equally important, help them build up their savings for the things that truly matter in their lives."
Ways to spend less
Over-spenders identified four key areas that they would do differently to prepare for the next holiday season:
- Set aside savings on a regular basis (37%)
- Spend less/resist any temptations to spend more than they've saved (30%)
- Create a holiday spending budget (28%)
- Spend more time finding sales (27%)
