Canadians Believe Christmas Spending Isn’t Really Worth It: Report
Millennials hoping to save for a downpayment probably agree (a ReMax report says a house in Toronto in 2020 could soon cost $812,210!).
This new report by Canadian saving and investing app Mylo claims that 60 per cent of Canadians believe that the average amount of money we spend during the holidays is wasted.
Saving, investing, and debt-managing are the top priorities for the non-holiday spenders, according to the report.
Mylo surveyed over 3,000 Canadians. It found that if the holidays were cancelled, nearly one in three Canadians would simply save and invest the money instead. Another one in four would pay off debt.
It also showed that, among holiday “non-spenders” 60 per cent indicated they would simply not do anything to “actively save money” during the holidays.
Survey respondents from Winnipeg (68 per cent), Saskatoon (68 per cent), and Montreal (67 per cent) topped the national list when it comes to saying that the money spent on the holidays isn’t worth it.
Interestingly, a recent survey done by Leger for the Retail Council of Canada (RCC) showed how much money Canadians plan to spend this Yuletide.
The national average for everything from gifts, travel, food and entertainment is $675, according to Leger, and varies considerably depending on the province.
Ontarians will spend the most (naturally) at $805 while Quebecers play Scrooge at $458.
So, perhaps not surprisingly, in the Mylo report Torontonians (the centre of the universe) topped the list of respondents (12 per cent) who indicated they would spend over $2,500 on the holidays, followed by Vancouver and Calgary residents at 10 per cent each.
Residents from Saskatoon were most likely to spend the money on travel (37 per cent), followed by Winnipeg at 27 per cent.
Folks from Halifax topped the list of cities that said that they’d use holiday money to “Party!” Sociable!
Phil Barrar, Mylo founder and CEO, says “staying focused on achieving financial goals while making the most of the holiday season can feel like a stretch.”
He added that apps like Mylo “give Canadians a simple, automatic, and stress-free way to save and invest towards major life goals as well as shorter-term ones, like celebrating the holidays.”
Here’s some other numbers Mylo uncovered:
- The average net saving for all Canadian households was $852 in all of 2018.
- The national average of debt reached $30,208in the second quarter of 2019 (not including mortgages). This includes $4,236 of credit card debt.
- The average Canadian will spend $1,593 over the 2019 holiday season.
- Almost one third of Canadians are afraid to look at their credit card bill come January.
So, have a great Black Friday, Cyber Monday, Merry Christmas and a Happy New Year.