As government restrictions begin to lift in some provinces, Canadians who have been feeling cooped up might return to their pre-pandemic shopping habits.
Toronto-based financial expert Preet Banerjee recently joined The Morning Show to talk about “revenge spending” and ways we can continue to save money.
Revenge spending, or spending with a vengeance, is a tendency Canadians might turn to to make up for the lost time, says Banerjee.
“We haven’t been able to spend money as much as we would want to during the pandemic.”
Banerjee adds that there are a lot of people who didn’t lose their income, but instead, lost the ability to spend money on big-ticket items like vacations or eating out.
“And so they’re thinking, ‘As soon as I’m allowed to, I’m going to spend big.’”
Banerjee acknowledges that though Canadians need a release valve for their mental health, there are ways to go about this without breaking the bank.
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He recommends planning a nice night out at a local restaurant or planning ahead for a vacation.
“Don’t necessarily spend a lot more than you would have just because you’re sitting on some more money,” he says.
Banerjee adds that people have cut many expenses like gym memberships and subscriptions during the COVID-19 pandemic and we can take this as an opportunity to reframe our shopping habits.
He recommends slowly reintroducing the expenses we cut on a month-by-month basis.
“By spreading that out … you can think about, ‘Do I really need to reintroduce this?’ and if (you do), by spreading it out, you kind of enjoy it more,” he says.
For people who have taken a financial hit during the pandemic and are beginning to see some more income, Banerjee recommends gearing your attention on accumulated debts.
Paying down high-interest debts and bolstering your emergency fund are two ways you can start saving money, he says.
For more information on revenge spending and tips on how to save money, watch the full video above.