SASKATOON – With the loonie hitting an 11 year low and a jarring drop in oil and gas prices, Canada’s economy may be affecting shopping patterns. According to a new survey by Sun Life Financial, more Canadians are becoming aware of the financial realities and cutting back on holiday spending.
Nine out of ten Canadians that took the survey said they decided to cut back by either spending less or the same this holiday season. Only ten per cent of people said they’ll be spending more.
It’s a trend Darren Ulmer, a financial planner at Sun Life, says he’s happy to welcome with open arms.
“We’ve been through some of the tumultuous financial times in financial history in the last 20 years. And perhaps people are learning,” he said.
Ulmer says the statistics are just a thermometer for what’s happening in the economy and for many it’s boiling down to one question: “Do you really need that?”
“What are the things that we can get rid of? What are some of the belt tightening things that we need to do. Because just sitting there and expecting the credit card to pay themselves off isn’t going to happen,” he said.
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The Saskatoon Chamber of Commerce suggests that a weak loonie could be a boost for local businesses.
“The Canadian dollar has certainly limited the amount of people’s interest in not necessarily stopping travel to other markets, the U.S. in particular, but maybe limiting they’re expenditures when they’re there,” said Kent Smith-Windsor, executive director of the Saskatoon Chamber of Commerce.
According to Ulmer, there are common financial mistakes everyone should watch for. Putting off paying that high credit card interest, not having some sort of investment plan and not having an emergency fund put aside for that rainy day are all examples.
Instead, he recommends calling your bank for that lower interest rate card and starting to put a little aside each month.
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