You might find yourself paying off those patio drinks and summer travel well into fall and winter, if you’re not careful.
Close to 30 per cent of Canadians admit they go into debt over the summer because of their money habits, according to a new BMO report.
More than half (52 per cent) of the roughly 1,000 people surveyed said their summer spending has a long-term negative effect on their savings.
“People are just more active in the summer and they tend to overspend,” said Tony Tintinalli, BMO’s regional vice-president for the Greater Toronto Area.
“Once the weather gets nice everyone wants to be outside, there’s the patio, there’s the cottage, we take road trips.”
Those in Atlantic Canada appear to be the worst at managing their money when the weather warms up. But people across the country, except in Quebec, don’t seem to have a concrete plan to pay off their summer credit card bills.
Half expect to pay off less debt than usual over the next few months. Over a quarter plan to dip into their savings to support their spending and 13 per cent will forego saving and paying off debt altogether to enjoy the season.
What they may not realize is that there are still plenty of ways to make the most of the nice weather without drowning yourself in debt.
How to save money this summer
1. Embrace JOMO
Don’t let the fear of missing out (aka FOMO) pressure you into doing things you know you can’t really afford.
Give into JOMO (the joy of missing out) instead. More and more people are opting for more low-key nights (like reading or Netflix binge sessions) rather than feeling forced to attend an (often pricey) outing they’re not that into.
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“Own that decision and be excited about it,” said Alyssa Furtado of RateHub, which recently did a study on FOMO.
READ MORE: Millennials most likely to be afflicted by FOMO
2. Throw a potluck
You don’t need to let thriftiness stop you from socializing.
Round up a bunch of your friends and organize a barbecue or picnic where each person brings something.
WATCH: Picnic ideas
The spread will no doubt be impressive and no one has to break the bank.
3. Grow (or regrow) your food
It’s garden season and growing your own produce is one of the best ways to save money on your grocery bill.
Things like potatoes, tomatoes, lettuce, cucumbers and herbs are easy to grow and don’t require much effort. Even if you don’t have space in your yard for a garden or live in an apartment, you can easily grow certain items in containers, along the wall using pallets, and even inside old tires.
Just don’t go overboard with your expectations. A small investment on some seed packs and already-started plants can yield big returns if you plan accordingly. If you can team up with neighbours to create a community garden you’ll have a greater investment-to-yield ratio.
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Other easy veggies to grow include green beans, beets, carrots, radishes, and zucchini. Check with neighbours or local gardening groups to see what else they have had success growing in your area.
WATCH: How to start your own vegetable gardens
If you’re not willing or able to commit to full-blown gardening, an even easier way to save money on produce is by regrowing the produce you buy at the store.
The next time you use green onions add the base you usually throw away (that white part with the roots on it) into a small jar with some water. Leave it in an area that gets a lot of light. In a few days you’ll be amazed to see that you have a brand new batch of green onions that you can cut and use (you’ll be able to do this many times off of one base).
And while green onions is by far the easiest produce to regrow, this also works with lettuce, celery and even pineapples.
(Make sure you change the water you’re using to regrow green onions and other produce every few days or it can get stinky.)
4. Enjoy a staycation
Fourteen per cent of people plan to stay at home for their summer vacation this year to get the most bang out of the Canadian buck, the BMO report found.
WATCH: Staycations becoming more popular. Aaron McArthur looks at why.
Luckily, there are always plenty of free festivals, and activities (like outdoor movies and concerts) to enjoy this time of year. You just have to watch for them.
Museums, galleries and theatres sometimes have “pay what you can” days or other deals that can save you some cash.
When it comes to food: rather than spend your hard-earned dollars at a restaurant, why not pack some snacks and hit the park for a picnic?
Chances are there are loads of hidden gems to discover in your own backyard.
5. Look for deals
When you run out of free stuff to do, dig for discounts.
“Go online and do a Google search for coupons, for no matter what it is you want to do or where you want to do it,” travel expert Claire Newell told Global News last month.
WATCH: No need to clip and save with these money-saving apps
Sites like Groupon and LivingSocial can be great for finding deals.
While this might not sound “fun” in the conventional sense of the word, this tip and the ones below can help stretch your dollar so you’re not as hard hit when you do splurge on those Mojitos.
6. Easy with the AC
As you try to keep the temperature down inside your home, you may be driving your energy bill way up.
Cut costs by keeping your windows closed during the day to keep warm air out, and open at night to allow cooler air in (if you’re willing to forego the air conditioner).
If and when you do use AC, set it to 25 degrees Celsius (77° Fahrenheit) “to provide the most comfort at the least cost,” Direct Energy recommends.
“You use three to five percent more energy for each degree that your air conditioner is set below 24° C,” the company says.
READ MORE: How to save money cooling your home this summer
Try to use ceiling fans whenever possible, as they take way less electricity to operate (just five cents an hour, according to Direct Energy) than ACs.
7. Make a budget
This last tip is the most important one, money experts say.
Mark Kalinowksi of the Credit Counseling Society recently told us that the most common thing he hears from clients is that they can’t believe how much they spend on everyday items and are shocked to discover that this is why they’ve incurred substantial debt.
WATCH: How to make a budget
— With files from Brian McKechnie, Global News
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