Jun 1, 2026
Many Canadians are heading into summer with a tighter grip on their wallets as higher everyday costs continue to shape spending decisions.
A new survey from TD Bank Group found that 35% of Canadians plan to spend less this summer, while nearly half say higher fuel prices are already affecting their travel plans.
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For many households, summer spending is increasingly becoming a balancing act between enjoying the season and keeping day-to-day costs under control. “Summer comes with a lot of expectations and spending can add up quickly,” said Sumaiya Bhula, senior manager of Saving and Investing Journey at TD, in a statement.
She added that simple steps such as setting a realistic budget, tracking expenses and focusing spending on what matters most can help people stay on track financially while still enjoying the summer months.
Fuel prices are changing travel plans
Travel is one of the clearest areas where Canadians are adjusting their plans this year.
According to the survey, 44% say rising fuel and aviation costs are influencing how they approach summer travel, while 61% of those planning trips say they are actively trying to reduce costs.
Many are also staying closer to home. More than three-quarters of respondents planning to travel this summer said they intend to vacation within Canada, with many choosing road trips or shorter domestic getaways over more expensive international travel.
At the same time, some travellers may be taking risks to save money. Nearly half of respondents said they do not plan to purchase travel insurance this summer, despite 29% saying they could only cover up to $300 in emergency travel costs themselves.
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Canadians are finding smaller ways to save
Rather than cutting out summer spending altogether, many Canadians appear to be making smaller adjustments to stretch their budgets further.
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The survey found that 62% are redirecting more money toward essentials such as groceries, fuel and housing, while others are leaning more heavily on loyalty points, discounts and lower-cost alternatives.
About 44% said they plan to redeem loyalty points this summer, while 36% are considering options such as DIY activities, second-hand purchases or cheaper alternatives to typical seasonal spending.
The survey also found that 79% of Canadians plan to support local or Canadian businesses this summer, with many respondents saying it has become a stronger priority than last year.
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Gen Z is spending differently
Younger Canadians appear to be approaching summer spending with a mix of caution and social pressure.
The survey found Gen Z respondents were the most likely generation to increase spending this summer, with 24% planning to spend more. Nearly one-third also said social pressure influences their spending decisions — more than double the national average.
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Dining out, concerts, travel and “photo-worthy” experiences ranked among the biggest spending categories for younger Canadians this summer.
At the same time, many are also becoming more selective about where they spend. Nearly two-thirds of Gen Z respondents invited to weddings said they have already declined invitations or become more selective about attending because of costs.
A little planning may go further this summer
TD says many Canadians are trying to avoid overspending not by cutting out summer entirely, but by being more deliberate about how they budget for it.
Some of the strategies highlighted by TD include setting spending limits before trips or events, prioritizing one or two key experiences instead of saying yes to everything, and using loyalty points or discounts to offset costs.
The report also recommends separating essential expenses from discretionary spending and regularly checking spending throughout the summer rather than waiting until the end of a trip or month to review costs.
TD’s latest survey shows that many Canadians still want to enjoy the summer months, but after several years of higher living costs, more households are hyper-aware of just how quickly seasonal spending can add up.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
