With health restrictions easing and more people being vaccinated, many Canadians will be interested in making up for lost time for spending.
The term “revenge spending” is catching on, indicating that some consumers are interested in cracking down on goods or experiences they had to give up last year.
In the United States, where sanctions have been lifted faster than in Canada, the highest cost is in beauty and nail salons, sporting goods stores, restaurants, clothing stores and car dealers, according to the latest report from TOP Data on Postpandomic Recovery.
The term “revenge spending” is new to Liz Shik, a certified financial planner at the New School of Finance in Toronto, but this is a phenomenon she is familiar with, especially when talking to independent professionals. And seasonal workers who experience income fluctuations throughout the year.
Whenever the shortage period is over, many times “Woohoo, we’re going to spoil ourselves! I want to do so many fun things! ”. It is a natural reaction to not being able to do anything.
Liz Schick, Financial Planner
While all population groups feel the need to celebrate and spend time, young people in particular are motivated by the feeling that they have been robbed of precious time, ्र.To me Skeek.
“When they want to go out, they want to go to bars, they want to go to concerts, they want to take a lot of trips and they want to see their friends. A lot of people are so social at this point in their lives that they really missed it and it makes sense. ”
Allie Bly, a 31-year-old employment consultant from Toronto, can’t wait to dine with friends, have cocktails at her favorite bars, attend concerts, visit museums and galleries, and visit her after she finally receives friends and family in Ottawa. The second dose of Pfizer’s vaccine.
“When it’s safer to go out more, I’m definitely remember the opportunity to double my spending, for example if I continue my epidemic habits and spend more money on grocery and online shopping,” trips while spending money or going out, “Ms.To me Bly.
“If I do, I can use more of my savings to cover these costs, rather than keeping a small cushion or investing a certain amount. ”
More opportunities to go out and celebrate
When people get a job promotion or celebrate a birthday or holiday, they may spend more, but there will be a clear end period for those costs, said Avni Shaw, an assistant professor of marketing at the University of Toronto and a research fellow at the Rotman School of Management.
“It can be a little more interesting and a little more dangerous than the usual cases when it is not connected with an interesting event,” she says.
Now people have a desire to spend when they are fully immunized, maybe when to vaccinate a spouse, when to vaccinate every good friend and so on.
“There are more opportunities to go out and celebrate and it’s stretching,” Ms.To me Shaw, it increases the chance of going overboard when spending.
Om adviceTo me Shaw is deliberately choosing when it comes to cost, especially when it comes to material goods. She asked me to make a list and asked “What do you want most from me?” When Means control measures are lifted.
“It is better to deliberately research these items than to make motivational purchases, which can lead to embarrassment,” she said.
This strategy can also be applied to social and group experiences such as parties with friends.
For experiences outside of it, it is better to look for cheaper options, like a drink in a happy hour, she gave as an example.
OmTo me Shaw and MTo me They both deal with their confidence as they choose to embark on their play activities, including personal services, consumer goods, large ticket items (such as travel) or with friends, family or acquaintances.
“Because it’s easy to forget [dépenser de l’argent pour sortir] COVID has not been in our budget lately, ”said M.To me Shaw. “It simply came to our notice then. ”