VACATIONS RANK FIRST IN SURVEY
By Adnews Staff
A vacation is the top item in Canadians' budgets. Registered savings plans place second, followed by furniture/appliances, home renovations and investments. These are findings in a spring survey, done by the Environics Research Group for the Royal Bank, which found that Canadian consumers are "shopping smart rather than buying fancy." Consumers are placing greater emphasis on savings and investment, and they are primarily concerned with meeting family needs before spending on personal wants. Two thousand and six Canadian adults answered the survey, conducted between March 4 and March 25 of this year. The study found that Canadians are putting their money into retirement savings and their children's educations. Home renovations are also popular, considering that many houses are now becoming places of business as well. Despite the trend towards practical purchases, vacations topped the list because consumers "scrimp all year long and then splurge on that one item to have some fun," says Anne Lockie, a senior vice-president with Royal Bank. The survey divides today's consumers into four categories. Penny Counters (40% of those surveyed) have household incomes of less than $35,000, and are generally older Canadians. Strategic Shoppers (31%) earn nearly $50,000 per household and tend to be in the 30-44 age group. Family First spenders (16%) earn from $25,000 to $50,000, are married and mainly in the 30-44 age group. Nearly half of the Ready Spenders (12%) earn more than $50,000 per household, and a high proportion of them live in Quebec.