This text is taken from Courrier de l’ économique. Click here to subscribe.
Quebec’s national holiday is generally considered to be the kick-off of the summer season: the holidays begin… and expenses skyrocket. This year, inflation will continue to impact vacation planning. And for those who will travel to the United States or Europe, the exchange rate will also weigh on the wallet. On average, Quebec households plan to spend a little more than $2,000 on their vacation this summer, according to a recent survey.
In Quebec, a little less than three-quarters (72%) of households believe that taking a vacation during the summer is important, or even very important, according to a recent Ipsos survey carried out for Allianz Global Assistance Canada. However, slightly fewer (61%) plan to take a break from work between June and September this year.
On average, Quebec households will spend nearly $2,180 on their vacation, according to the same survey. This amount — which includes the costs of travel, accommodation and activities — is lower than the average for all of Canada, which stands at $2,728.
We also note a major difference in the vacation budget depending on the presence or not of children in the household. According to Ipsos, parents will spend much more ($3,519) than couples without children ($2,340).
“Ideally, you need to have saved in advance so as not to pay for your vacation on credit,” argues Julie Brissette, budget advisor at the Family Economy Cooperative Association (ACEF) of eastern Montreal.
She recommends that future vacationers prepare a budget so as not to spend lavishly. “What are we planning to pay for housing, food, activities? You need to set goals to avoid impulsive spending and, as much as possible, monitor expenses in real time during the holidays to see where you are,” she says.
Thinking about the exchange rate
Those who will be traveling abroad must also take the exchange rate into account. Currently, US$1 is worth CA$1.37. The gap between the loonie and the currency of the Old Continent is even greater: €1 is currently worth around CA$1.46.
So, the nearly US$25 lobster roll tasted in Maine will actually cost you CA$34.24. And your €10 slice of pizza in Rome will be worth CA$14.65. In short, have a calculator nearby so you don’t fall off your chair when you see your bank account on your way back.
The return home will also be an opportunity “to take stock,” emphasizes Julie Brissette. “If you spent money with your credit card, it’s important to make a plan to pay it back quickly,” she adds, especially since interest rates are high.
“The situation is difficult at the moment with inflation. We see people coming to consult us who would never have done so two years ago,” notes the budget advisor.
The ACEF of eastern Montreal also recommends some good practices to put in place to avoid going broke: optimize your travel to avoid busy periods, where costs are higher, check if your credit card imposes currency conversion fees and favor public transport.
This text is taken from Courrier de l’ économique.