After overspending on the holidays, clients shift to saving

The number of Canadians who are spending more than they expect to each holiday season was at its highest in five years this past December, finds an RBC survey.

In 2015, 41% of shoppers overspent, compared to 33% in 2011. In fact, more Canadians in every region of the country except Ontario over-spent during the found the survey.

Read: U.S. retail sales expected to grow 3.1% in 2016

The largest expenses per person were on electronics ($172) and toys ($94); spending in these two categories was highest for people aged 18-34, coming in at $228 and $100, respectively. Post-holidays, younger Canadians who overspent are also taking the lead in making plans to help get their finances back on track, compared to Canadians in general, by cutting back on entertainment (41% vs. 39%) lunch and coffee money (41% vs. 29%).

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Younger Canadians who overspent this past holiday season are also taking actions now to try to avoid a repeat performance, including:

• Setting aside savings specifically for holiday expenses 
(40% vs. 31% for Canadians in general)
• Creating a budget early in 2016 (35% vs. 24%)
• Redeeming rewards points for holiday expenses (18% vs. 15%)

A growing trend among shoppers of all ages is the use of rewards points. RBC’s poll found 51% of Canadians who collect points redeemed their rewards this past holiday season to save themselves an estimated $206 each.

Read: U.S. companies benefit when budgeting like Kraft Heinz

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.