News

Unhealthy spending habits of some Canadians revealed in BMO report

September 25, 2012

Impulse spending is a financial problem for Canadians, according to a BMO report released today. 

The BMO Psychology of Spending report, conducted by Pollera, found the majority (59 percent) make impulse purchases, with half (52 percent) regretting the purchases after the fact, and 43 percent sometimes spending more in a month than they earn, according to a press release.

The report also revealed:

• The majority of Canadians at least sometimes shop to cheer themselves use and buy something they may not need because it's on sale (60 percent and 55 percent respectively), and 42 percent buy items they never use.
• On average, Canadians spend $310 a month on items they want but do not need, and believe they could save over two-thirds of this amount if they made an effort to limit their spending.

"Financial anxiety is commonly triggered by larger one-time expenses, but spending on a daily basis can be the most disruptive when it comes to keeping your financial house in order over the long term," said Lily Capriotti, VP of the BMO Bank of Montreal. "In most cases, impulse spending is an emotional transaction. Setting parameters and tracking your daily spending can help curb behaviors that can negatively affect the larger picture."

Read more about consumer behavior.