Amid economic uncertainty, Canada’s consumers showed restraint during the holiday season.
A new poll from RBC reveals that fewer people overspent and increased their debt burden with an average overspend of $384, 28% lower than a year earlier and the lowest in 8 years.
Young adults (18-34) cut their overspending to an average of $363 and women cut theirs to $379; both were reduced by almost $200 compared to the previous year.
“We're all tempted to toss aside the budget during the holiday season, but what a good news story to see that Canadians showed restraint this year and far fewer are entering 2019 with holiday debt weighing them down," said Vinita Savani, Vice-President, GICs & Savings, RBC. "Canadians are starting 2019 off on the right foot – their next step will be managing their spending throughout the year and seeing if they can build up their savings too."
Saving for a down payment
The poll shows that savings remain challenging for many Canadians – including those struggling with the ever-increasing amount needed for a down payment in many markets.
Asked about saving more this year, 23% responded that they weren't saving regularly now and weren't expecting to be able to save anything 'extra'.
RBC has added NOMI Find & Save to its mobile app. It proactively analyzes spending and saving and finds extra money customers won’t miss and automatically sets it aside in a savings account.
Regional comparisons & national gender findings
|
Overspent? |
NAT'L |
BC |
AB |
SK / |
ON |
QC |
AC |
M |
F |
|
Yes |
40% |
43% |
39% |
48% |
43% |
34% |
33% |
39% |
41% |
|
By how much? |
$384 |
$464 |
$404 |
$500 |
$410 |
$230 |
$357 |
$389 |
$379 |
|
How overspenders |
NAT'L |
BC |
AB |
SK / MB |
ON |
QC |
AC |
M |
F |
|
Spend less on lunch & |
30% |
34% |
34% |
28% |
26% |
34% |
37% |
29% |
31% |
|
Spend less on day-to- |
25% |
32% |
24% |
26% |
24% |
21% |
29% |
25% |
25% |
|
Carry costs on credit |
20% |
15% |
20% |
21% |
22% |
18% |
19% |
22% |
18% |
|
Carry costs on credit |
14% |
14% |
7% |
20% |
16% |
14% |
7% |
15% |
13% |
|
Carry costs on my |
8% |
6% |
9% |
18% |
7% |
6% |
5% |
10% |
6% |
|
I've already paid |
30% |
28% |
35% |
36% |
30% |
29% |
28% |
31% |
30% |
|
Don't know how I'll pay |
8% |
9% |
3% |
6% |
9% |
6% |
12% |
7% |
8% |
|
Average amount spent |
NAT'L
|
BC |
AB |
SK / |
ON |
QC |
AC |
M |
F |
|
Toys |
$96 |
$85 |
$116 |
$106 |
$107 |
$77 |
$80 |
$93 |
$99 |
|
Electronics (e.g. |
$102 |
$106 |
$92 |
$84 |
$108 |
$93 |
$124 |
$132 |
$74 |
|
Entertainment (e.g. |
$51 |
$47 |
$62 |
$50 |
$52 |
$48 |
$51 |
$60 |
$43 |
|
Giving experiences to |
$129 |
$110 |
$114 |
$168 |
$149 |
$97 |
$153 |
$137 |
$122 |
|
Gift cards |
$119 |
$118 |
$95 |
$187 |
$118 |
$103 |
$150 |
$113 |
$124 |
|
Gifts for pets |
$29 |
$21 |
$29 |
$29 |
$36 |
$20 |
$36 |
$33 |
$25 |
|
Giving to charities on |
$28 |
$16 |
$23 |
$44 |
$32 |
$26 |
$27 |
$34 |
$21 |
