Did you end up spending more money this holiday season than you had originally planned?
If you did, you’re not alone.
According to a recent study by RBC, more than a third of Canadians—36 per cent—went over budget by an average amount of $459 this past holiday season, which is up from an average of $384 in 2018.
Additionally, men, on average, outspent more than women; men overspent by an average of $544 compared to $372 by women.
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Further, Canadians ages 34 to 55 overspent more than any other demographic, as they went over budget by an average of $531.
Fortunately, however, 32 per cent of Canadians have already paid off the debt they accrued this past holiday season.
As well, 25 per cent of Canadians yet to pay off their holiday debt plan to do so by spending less on day-to-day expenses, while 24 per cent plan to pay it off by trimming their entertainment budget.
“Every dollar counts, whether you make a conscious decision to save it or simply not spend it,” Niranjan Vivekanandan, Vice-President of Term Investments & Savings for RBC, said in a news release.
“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,” Vivekanandan continued.
Of those surveyed who overspent, 10 per cent said they regretted not sticking to their budget.
When asked how they would avoid overspending in the future, 37 per cent said they would try to set money aside on a regular basis, 30 per cent said they would resist the temptation to spend more than they had in savings, 28 per cent said they would create a holiday budget, and 27 per cent said they would focus more on finding sales.
“We all have such good intentions to save more, especially early each new year. Think how many times you’ve said, ‘I’ll make my lunch’ or ‘I won’t buy a coffee today’? Small amounts do add up, and here’s where technology can be a big help,” Vivekanandan added.