Don’t let summer fun leave you in debt, financial expert says
As Canadians are feeling the urge to spend on summer fun, one financial advisor recommends being realistic and cautious this year.
“People have this urge because they’ve been locked up for the past couple of years. So, we know they’re ready to get out there, ready to spend,” BDO Canada’s Jasmin Brown told CTV News.
“Things are opening back up. People are looking to spend money on travel, leisure, outdoor, recreation,” she said. “We’re just saying exercise some caution because of a few different factors.”
“Inflation is at a 31-year high, which means everything down to the backyard barbecue is going to cost more money.”
CANADIAN CREDIT CARD DEBT INCREASES
Brown also noted that household debt was at “near record highs.”
“We know that people are relying on credit cards to fill the gap already. And we know that interest rates are rising. So it’s creating a perfect storm for people to get in trouble with debt if they don’t mind what they are spending.”
Canadians’ credit card spending climbed by 17.5 percent in the first part of 2022, according to an Equifax press release.
The average Canadian is over $20,000 in non-mortgage debt. In total, consumer debt rose to $2.3 trillion in the last year.
BE CREATIVE THIS SUMMER
Brown says its vital to stick to a budget.
“There is still some time to look at what you can actually afford to spend this summer. I always recommend start by looking at what is coming in and what is left over after the monthly bills are paid. You want to use that budget and make sure you’re tracking as you go to keep your spending in check.”
She also said consumers can get creative when it comes to having fun and saving money.
“You might consider a staycation versus a vacation where you have to travel far away. If you are travelling, use the websites to find a lower priced hotel. Look at buying food from the grocery store instead of dining out. Look at the creative things you can do to save some money.
“You might have a backyard barbecue but make it a potluck so you can share some of that expense because you will not be the only one that is feeling the pinch.”
FOMO
Brown also said that people should not let the ‘fear of missing out” drive them into debt.
“It’s important to be realistic about what you’re seeing. You’re seeing posts of the beaches, the drinks on the patio, the dining out but what you don’t see with that is affordability or the credit card statement. Just be realistic about what you can actually afford in your budget.”
If nothing else, she said, turn off your device.
“If you’re already struggling financially and you’re finding you are experiencing FOMO, summer is a time to relax, kickback, think about unplugging. Just disconnect from your social media. It will help you financially if you’re prone to giving in to keeping up or comparing yourself with others,” she explained.
“Keep in mind summer can be fun. You can have fun without breaking the bank. You just want to be careful and preplan as much as you can. Look at that budget and keep yourself on track.”
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.