In Brief: More than a third of Canadians plan to reduce their summer spending in 2026, with rising fuel prices and cost-of-living pressures driving changes in travel and purchasing habits, according to a new TD survey.
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Rising Costs Prompt Canadians to Scale Back Summer Spending, TD Survey Shows – Image Credit Unsplash
Overview of Survey Findings
A recent TD survey reveals that 35% of Canadians intend to spend less this summer, with 44% reporting that higher fuel costs are directly affecting their travel decisions. The survey, conducted in May 2026, highlights how inflation and increased transportation expenses are shaping Canadians’ summer budgets and activities.
While many are tightening their budgets, the survey also shows that 24% of Gen Z respondents plan to increase their summer spending, often influenced by social pressure. Additionally, a strong majority (79%) of Canadians say they plan to support local or Canadian businesses, and nearly half (48%) report that this is a higher priority than last summer.
Adjustments to Summer Budgets
The survey indicates that Canadians are making deliberate financial trade-offs in response to persistent cost pressures. Among those planning to cut back, 40% cite higher transportation costs as a significant factor. Most respondents (62%) are redirecting their spending toward essential needs, such as groceries, fuel, and housing.
To adapt, Canadians are employing several strategies: – 44% are redeeming loyalty points – 36% are choosing lower-cost alternatives, such as do-it-yourself options or purchasing second-hand items
Impact of Fuel Prices on Travel Plans
Travel is one of the main areas affected by rising costs. With crude oil supply constraints pushing up fuel and aviation prices, 44% of Canadians say these costs are influencing their travel plans. Of those who still intend to travel, 61% are actively seeking ways to reduce travel expenses.
The survey also highlights a gap in financial preparedness for travel. Nearly half (46%) of Canadian travelers do not plan to purchase travel insurance this summer, and 29% say they could only cover up to $300 in emergency travel costs without insurance.
Support for Local Businesses
As Canadians reconsider travel plans, many are opting to spend more within the country. The survey finds that 76% of those planning to travel will stay within Canada, with 55% exploring their own province and 41% traveling to other parts of the country.
Support for local businesses remains strong: – 79% plan to support local or Canadian businesses this summer – 48% say their commitment to buying local is stronger than last year
Canadians are supporting local economies by purchasing Canadian-made products (48%), dining at local establishments (41%), and shopping at independent retailers (32%).
Gen Z’s Distinct Spending Patterns
Gen Z Canadians are more likely than other generations to increase their summer spending, with 24% planning to spend more. Social pressure is a significant factor, with 32% of Gen Z respondents citing it as an influence, compared to the national average of 14%.
Top spending categories for Gen Z include: – Experiences driven by fear of missing out (30%) – Dining at trendy restaurants (29%) – Shareable or photo-worthy activities (28%) – Travel (24%) – Events such as concerts, festivals, or sports (22%)
Despite increased spending, Gen Z is also more selective about which events to attend. Among those invited to summer weddings, 64% have declined or are being more selective, compared to 48% of the general population.
Conclusion
The TD survey underscores a shift in Canadian consumer behavior for summer 2026, with most households adjusting their spending in response to ongoing economic pressures. While many are cutting back and prioritizing essentials, there is also a notable trend toward supporting local businesses and making careful choices about discretionary spending, particularly among younger Canadians.
