Canadians in a Gift Giving Mood but Tightening
Their Belts on Holiday Spending: RBC
Canadians' average planned holiday spending
down six per cent to $1,182
TORONTO, November 15, 2012 With the peak
holiday shopping period around the corner, the majority (82
per cent) of Canadians are in the gift-giving mood, according
to the latest RBC
Canadian Consumer Outlook, Overall, Canadians who will
celebrate by giving gifts intend to spend $1,182 on the holidays
including gifts, decorations, entertaining and travel. This
is down six per cent from the $1,251 of last year's anticipated
spending amount and more in line with the spending intentions
of $1,137 in 2010.
Among Canadians who will buy gifts, on average, they plan
$629, which is less than last year ($640), but also on par
with 2010 ($624). Canadians gift-givers intend to significantly
curb their spending on holiday expenses other
than gifts, to an average of $553, down 10 per cent from last
"It's clear that Canadians are conscious of their finances
and are taking a closer look at what they can afford this
holiday season," said Chris McEachern, financial planning
role strategist, RBC Financial Planning. "A little planning
ahead of your holiday shopping can make all the difference.
By creating a realistic budget and keeping track of your purchases,
it will help you avoid the post-holiday blues when the bills
More than half (56 per cent) of Canadians plan to fund
their festivities with savings and one-in-five (24 per cent)
plan to use credit cards; however, almost one-quarter (23
per cent) say they have not thought about how they will pay
for the holiday season.
"No matter how you choose to purchase your gifts, whether
it's with debit or credit cards, in store or online, knowing
how you'll cover your holiday expenses is crucial to avoiding
unwanted debt and ensuring you are in good financial shape
for the new year," added McEachern.
RBC offers the following tips and secure payment options
for holiday spending to help ensure that you stick to your
holiday budget while enjoying the spirit of the season:
- Take control by preparing a budget - A budget will
help you live within your means, during the holidays and
throughout the rest of the year, and avoid unnecessary debt.
Planner can help you put a plan with a budget in place
or online budgeting and savings resources available on websites
such as www.rbc.com/savingsspot
can be of great assistance to help keep holiday spending
plans under control. myFinanceTracker
is another online customizable financial management tool
that will help keep tabs on your monthly spending so you
know exactly where your money is going and how to budget
- Use cash and credit wisely - If you plan on using
savings for your holiday costs, make your credit card work
for you by using it for purchases and then immediately pay
off the balance. Many rely on their credit cards for larger
purchases but may not use it for everyday shopping instead
of using cash. Holiday spending on groceries, gas, restaurants
and clothing can add up quickly, but using your card can
help you keep track of your expenses and also earn rewards
more quickly while taking advantage of a temporary interest-free
loan on purchases.
- Shop online with confidence - E-commerce sites
are a great way to avoid crowds at the mall. Use the RBC
Virtual Visa Debit for shopping online with funds coming
directly from your bank account. This is a simple and secure
way to make purchases that will be processed over Visa's
network, providing the protection of Visa's multiple layers
of security including: Visa's Zero Liability Policy, Verified
by Visa, E-Promise, AVS (Address Verification Service) and
CVV2 (the three-digit code).
- Have someone that's "hard to buy for"?
- More secure than cash, RBC
Visa Gift Cards can be used anywhere around the world
where Visa cards are accepted, including online, giving
friends and family more options than traditional store gift
cards. RBC Visa Gift Cards are available at all RBC branches.
- Get peace of mind with purchase protection and extended
warranty - Take advantage of these insurance features
on gifts (e.g. electronics) that RBC
credit cards offer. Need help finding the right card?
Visit the RBC
About RBC savings and other financial
advice and interactive tools
Canadians can access RBC
Financial Planning and www.rbc.com/savingsspot
for free planning, budgeting and savings advice and resources,
or to find an Investment
and Retirement Planner near you. In addition, all personal
banking clients can use myFinanceTracker,
a no-cost interactive financial management tool, to create
and track their budget, savings goals and spending habits.
Whether Canadians want to get more from their day-to-day
banking, protect what's important, save and invest, borrow
with confidence or take care of their businesses, the RBC
Advice Centre can help answer their questions. Interactive
tools and calculators provide customized information covering
many facets of personal finance. In addition, online advice
videos are updated regularly to reflect current trends and
to answer the questions that are top of mind with Canadians.
With the guidance of RBC advisors who are available to chat
live, Canadians have access to free, no-obligation professional
advice about RBC products and services and personalized one-on-one
service at www.rbcadvicecentre.com.
About The RBC Canadian Consumer Outlook
The survey is conducted online via Ipsos Reid's national I-Say
Consumer Panel to 3,375 Canadians (540 British Columbia, 540
Alberta, 469 Saskatchewan/Manitoba, 735 Ontario, 609 Quebec,
482 Atlantic Canada). 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 October 1 to 10, 2012. The precision of
Ipsos Reid polls are calculated using a credibility interval.
In this case, the poll is accurate to within ±1.9 percentage
points of the entire Canadian population.
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