RBC Poll finds most Canadians stayed on budget
over the holidays
Debt worries and setting a budget help Canadians
limit spending
Almost one-third of Canadians overspent
TORONTO, January 31, 2012— A majority of
Canadians (69 per cent) managed to keep their holiday spending
in check, listing concerns about debt levels (40 per cent)
and tracking spending with a budget (27 per cent) as
the top
reasons, that they stayed on track, according to the 2012
RBC Post-Holiday Spending Poll.
Almost one-third of Canadians (31 per cent) said they spent
more than intended during the holidays, down two percentage
points from last year. These Canadians overspent by an average
of $467, up almost $38 from the previous year. Women continued
to go over budget more often than men (35 per cent, compared
to 26 per cent, roughly the same proportion as the previous
year). Four-in-10 Canadian parents (41 per cent)
spent more than planned, little changed from last year (42 per cent).
"It's encouraging to see that the majority of Canadians
kept an eye on personal debt and took a more cautious approach
to holiday purchases," said Richard Goyder, vice-president
of Personal Lending at RBC. "However, some Canadians
went beyond their budget, meaning that there's still room
for improvement when creating a budget and payment plan."
The poll found that among Canadians who overspent during
the holidays, most plan to cut back on entertainment (42 per
cent) and day-to-day living expenses such as groceries, phone
and cable (41 per cent), to get back on track. Over one-third
of Canadians plan to give their credit cards a break (35 per
cent) and trim trips for coffee or lunch (31 per cent).
"There are ways to get into the spirit of the holiday
season without breaking the bank and then having to deal with
short-term fixes throughout the year," added Goyder.
"The New Year is a great time to review your finances,
get a proper handle on your debt load and set out a budget
to pay it off and start saving."
In a previous RBC
poll, Canadian gift-givers planned to spend
an average of $640 on gifts
- up from $624 last year - and on average expected to spend
$100 more than last year ($612 compared to $512) on other
holiday items such as entertainment, decorations, and travel.
Goyder offers the following tips to help achieve financial
balance:
- Tackle your debt: Organize your debts in order
of their interest rates and pay off the one with the highest
interest rate first. Also consider consolidating all of
your loans under one umbrella.
- Track and prioritize spending: Look at your monthly
expenses to get a better idea of your daily spending. Include
everything, even small items such as snacks and coffee.
Prioritize your spending by looking at small adjustments
that you can make easily before moving on to bigger items.
Try to tuck away a fixed amount into savings or investments,
such as a Tax-Free Savings Account or an RRSP.
- Use free online tools: Online debt
calculators can help you track your overall debt and
how this compares to your income and savings. These online
tools are free and easy to use so that you can get a consolidated
view of your full financial picture.
- Get professional advice: Speaking to a qualified
financial advisor can give you a better idea of your overall
credit situation and advice on what strategies you can use
to reduce your debt load and stick to your savings plan.
Provincial Highlights
| National |
31 per cent
(down from 33 per cent a year ago) |
| British Columbia |
30 per cent (no change) |
| Alberta |
29 per cent
(down from 31 per cent a year ago) |
| Saskatchewan and Manitoba |
32 per cent
(down from 35 per cent a year ago) |
| Ontario |
32 per cent
(down from 36 per cent a year ago) |
| Quebec |
29 per cent
(up from 28 per cent a year ago) |
| Atlantic Canada |
35 per cent
(down from 37 per cent a year ago) |
| National |
$467.10
(up $37.80 from $429.30 in 2010) |
| British Columbia |
$543.40
(up $50.30 from $493.10 in 2010) |
| Alberta |
$531.80
(up $25.20 from $506.60 in 2010) |
| Saskatchewan and Manitoba |
$408.40
(up $28 from $380.40 in 2010) |
| Ontario |
$465.70
(up $64.10 from $401.60 in 2010) |
| Quebec |
$416.10
(up $23.60 from $392.50 in 2010) |
| Atlantic Canada |
$472.20
(down $49.10 from $521.30 in 2010) |
About RBC Post-Holiday Spending Poll
The survey was conducted online via Ipsos Reid's national
I-Say Consumer Panel to 4,479 Canadians. Weighting was then
employed to balance demographics and ensure that the sample's
composition reflects that of the adult population according
to Census data and to provide results intended to approximate
the sample universe. Data collection was January 9 to 16,
2012. A survey with an unweighted probability sample of this
size and a 100 per cent response rate would have an estimated
margin of error of ±1.46 percentage points, 19 times
out of 20, of what the results would have been had the entire
population of adults in Canada been polled.
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For more information, please contact:
Ka Yan Ng, RBC Corporate
Communications, 416-974-1794
Matt Gierasimczuk,
RBC Corporate Communications,
416-974-2124
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