It appears reports that Canadians didn’t plan on spending as much this holiday season were greatly exaggerated.
Despite reports that Canadians would be more frugal this past holiday season, largely due to the pandemic, the average amount Canadians spent was $735—an increase from the $709 spent in 2019.
According to a recent poll from RBC, this is the highest amount in a decade.
Based on the results, 25 per cent of consumers overspent by an average of $588, which is 28 per cent more than the average amount from the year prior.
Additionally, the biggest overspenders were from Ontario—29 per cent, followed by Atlantic Canada—27 per cent, and Quebec—25 per cent.
Further, 67 per cent of those who spent more than they intended to have yet to pay off all of their holiday bills.
Of those who are trying to figure out how to pay off the balance on their credit cards, 24 per cent said the plan on cutting back on entertainment expenses, while 23 per cent said they plan to cut back on their daily living expenses, and 16 per cent said they expect to carry the balance on their credit card for at least the next two months.
“We know Canadians have the best of intentions about saving and that it can be difficult to set a budget and stick to it. In these uncertain times, we’re also seeing that, while some are able to save more than they thought because they are spending less, others are struggling to make ends meet as a result of the pandemic,” Niranjan Vivekanandan, vice-president of Term Investments and Savings for RBC, said in a news release.
“That’s why we have NOMI Find & Save and NOMI Budgets in place, to help clients save and to simplify the budgeting process, regardless of the situation they are navigating. We are here to help in all instances,” he continued.