In the Face of Biting Inflation, Canadians Are Embracing the Savings Mentality

Toronto, Ontario, June 27, 2024 — A new Ipsos poll conducted on behalf of CIBC reveals that a majority (55%) of Canadians typically spend the most during the summer months. And while this year might not be any different, in that regard, Canadians are somewhat tepid about summer spending and are embracing a savings mentality, in response to prevailing economic conditions.

The impact of inflation is undeniable, as over three-quarters report making changes to their spending habits in response to the rising cost of living (77%) and/or are actively seeking ways to save money on summer activities (77%), highlighting a desire to enjoy the season without overspending. It follows that most (74%) are finding it harder than ever to save money. Taken as a whole, this has led to the emergence of a savings mindset, as two-thirds (64%) indicate that they are embracing this mentality, this summer, despite a greater appetite for splurging, during the summer months. 

When it comes to funding their summer travel plans, Canadians are demonstrating a fiscally prudent approach, underscoring the prominence of the savings mentality. More than one-quarter (27%) are scaling back travel plans, around two in five (37%) are delaying large purchases, as many as half (50%) are reducing day-to-day spending, and three-fifths (60%) of those planning trips indicate that they will rely on their personal savings to cover the costs. A significant portion of those planning summer trips – around three in five (62%) – intend to spend less than $2,000 on their travels (40%) or express uncertainty regarding their travel budget (22%), indicating many budgets might still be pending review. This suggests a trend towards more affordable and potentially shorter trips, highlighting an overarching savings mentality.

Two-thirds (67%) would rather invest in experiences than buy physical items. For many, such experiences might be limited to domestic options, this summer. Indeed, two-thirds (67%) of those planning summer travel indicate that they will likely stay within Canada, opting for domestic experiences over trips to the United States (28%) and/or other international destinations (24%). Road trips (48%) and camping (20%), in particular, are emerging as popular choices, with considerable proportions planning to embark on these types of domestic journeys, this summer. What’s more, around two-thirds (68%) are concerned about the strength of the dollar, with a weaker exchange rate exacerbating the economic climate. These results indicate many are choosing more affordable domestic travel options, this summer, further underscoring the prominence of an emerging savings mentality in Canada. 

Canadians clearly have savings on their mind, but many need help finding a path where savings can be maximized or even recognized, given the current economic climate. Perhaps not surprisingly, around three in five (58%) admit they would benefit from receiving financial advice, of which the highest proportion cite strategies to mitigate the cost of living (26%) and/or inflation (21%) as areas they could use help. Dining out (53%), entertainment (31%), and clothing (31%) lead as the expenses Canadians are looking to better manage and/or cut back on, this summer.

About the Study

These are some of the findings of an Ipsos poll conducted between May 13 and May 17, 2024 on behalf of CIBC. For this survey, a sample of 1,500 Canadians aged 18+ were interviewed online. Sample was source from the Ipsos panel. Weighting was employed to balance demographics to 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. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±3.1 percentage points, 19 times out of 20, had all Canadian investors been polled. The credibility interval will be wider among subsets of the population (in this case, investors). 

For more information on this Factum, please contact:

Sean Simpson
Senior Vice President, Ipsos Public Affairs
[email protected]

James Cottrill
Senior Account Manager, Ipsos Public Affairs
[email protected]

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