BMO Financial Group

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

October 03, 2014 06:00 ET

Canadians' Summer Budgets Simmered But Didn't Overheat-BMO Poll

- More than half of Canadians stayed on budget

- Overspending averaged $1,165, with vacations leading the way

- Result means some consumers will have to cut back on winter holiday spending

TORONTO, ONTARIO--(Marketwired - Oct. 3, 2014) - According to a BMO Bank of Montreal poll released today, more than half of Canadians (55 per cent) stuck to their summer spending budget, while the other 45 per cent spent an average of over $1,165.53.

The poll, conducted by Pollara, revealed the key areas where Canadians went over budget in their summer spending:

  • Vacations: An average of $1283 more than planned was spent on weekend trips and longer summer getaways.
  • Impulse Purchases: $350 over budget was spent on unplanned purchases.
  • Entertainment: An extra $368 was spent on dining out, going for drinks and other forms of entertainment.
  • Seasonal Consumer Goods: Children's activities, clothing, and sporting and outdoor equipment cost an additional $379 more than planned.

Funding Extra Summer Fun

To subsidize for additional costs, Canadians who overspent dipped into existing savings, cut-back on other spending, took on additional debt or deferred debt payments. Some over spenders also face consequences heading into the winter months, having to cut back on holiday spending or opt-out of a winter vacation.

Subsidizing for Overspending National
Dipped into existing savings 48%
Cut-back in other areas over the summer 35%
Went into debt or deferred debt payments 27%
Will have to cut back on holiday spending or will not take a winter vacation 20%

"It can be especially tempting throughout the summer months to dip into savings and take on additional debt," said Tony Tintinalli, Regional Vice President, BMO Bank of Montreal. "Extra summer fun can quickly become a financial burden during the winter, especially when balancing larger debt payments, holiday spending and the added costs associated with Canadian winters."

Mr. Tintinalli noted that Canadians need to examine their larger financial picture while developing their winter budgets. Planning in detail for spending and expenses, while replenishing savings or paying down debt, helps put finances back on track and avoid further complications.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had more than $586 billion in total assets and approximately 47,000 employees at July 31, 2014.

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