According to a new TD survey, “splurging is out and saving is in” this summer as Canadians rethink their spending due to ongoing cost-of-living pressures, like rising fuel prices, reshaping household budgets and travel plans.
Some of the key findings in the TD survey include:
- 35% of Canadians plan to spend less this summer
- 44% say higher fuel costs are influencing travel decisions
- 24% of Gen Z Canadians – the highest among all generations – plan to increase their summer spending, driven largely by social pressure
- 79% of Canadians plan to support local or Canadian businesses, with 48% saying it’s a stronger priority than last summer.
The survey highlights how persistent cost pressures are pushing Canadians to make more deliberate financial trade-offs. Among those cutting back this summer, 40% cite higher transportation costs as a key factor, while 62% are redirecting spending towards everyday needs, such as groceries, fuel and housing.
And the survey also found that Canadians adapting to the cost-of-living pressures they’re facing in creative ways, including:
- Redeeming loyalty points (44%)
- Choosing lower-cost alternatives such as DIY options or purchasing second-hand items (36%)
Sumaiya Bhula, Senior Manager, Saving and Investing Journey at TD, observed that: “Summer comes with a lot of expectations and spending can add up quickly. Simple steps like setting a realistic budget, tracking expenses and prioritizing what matters most can help Canadians stay in control while still enjoying the season.”
The TD survey also found that travel is one of the most prominent areas where Canadians are feeling squeezed, noting that amid crude oil supply constraints, 44% of Canadians polled say fuel and aviation costs are affecting their summer travel decisions. Among those planning to travel, 61% say they are actively reducing travel costs, signaling a shift in how some Canadians are approaching their summer trips.
As well, the survey revealed a gap in financial preparedness:
- 46% of Canadian travellers don’t intend to purchase travel insurance this summer
- 29% say they can only cover up to $300 in emergency travel costs without insurance
Patricia Foley, Associate Vice President, Life, Health & Credit Protection at TD, said that: “When travel budgets are already stretched, skipping travel insurance might feel like an easy place to save, but disruptions like a trip cancellation or unexpected medical emergency can quickly become costly.”
And said Foley: “Having the right travel insurance coverage could help protect your finances and your trip, allowing you to travel with greater confidence.”
And as Canadians shift their summer travel plans, findings of the TD survey indicate that many are becoming more intentional with their vacation destinations and buying habits:
- 76% of Canadians planning to travel intend to stay within Canada, with 55% exploring their own province and 41% travelling elsewhere domestically
- 79% plan to support local or Canadian businesses this summer
- 48% say their desire to support local businesses is stronger than last year
Canadians are also supporting local by buying Canadian‑made products (48%), dining locally (41%) and shopping at independent retailers (32%).
Julia Kelly, Vice President, Small Business Banking at TD, pointed out that: “Local businesses are the heartbeat of our communities and it’s encouraging to see Canadians choosing to explore their own backyards.”
And Kelly continued: “Shifting even a portion of summer spending to local businesses helps sustain communities, while also creating meaningful experiences close to home and supporting the entrepreneurs who drive our local economies.”
As for younger Canadians, well, they’re taking a distinctly different approach to their summer budgeting. Gen Z Canadians are the most likely generation to increase spending this summer, with nearly one-in-four (24%) planning to spend more.
Meanwhile, 32% of Gen Z say social pressure is influencing their summer spending decisions, more than double the national average (14%). Among this group, the top spending categories include:
- FOMO-driven experiences (30%)
- Dining out at trendy restaurants (29%)
- Shareable or photo-worthy activities (28%)
- Travel (24%)
- Events like concerts, festivals or sporting events (22%)
At the same time, Gen Z is also drawing clearer boundaries. Among those invited to summer weddings, nearly two-thirds (64%) say they’ve already declined or are being more selective, far exceeding the general population (48%).
Jeet Dhillon, Senior Portfolio Manager, TD Wealth, said that: “Social media can sometimes make it feel like you have to say yes to every experience. Having a clear sense of what you value – and what fits your budget – can make it easier to enjoy summer without letting impulse or pressure derail your financial plans.”
This TD survey, conducted using the Leger Opinion panel, ran from April 17-27, 2026, with a nationally representative sample of 1,500 Canadian adults. The results have been weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.
