More than half of Canadians surveyed are concerned about their personal financial situation but they haven’t changed their subconscious spending habits, according to a new report – The Quiet Spend – by FP Canada.
Most people are spending money subconsciously by charging monthly subscriptions to credit cards (64%) or using credit to make other payments (59%).
While some Canadians dialed back spending in certain areas, other types of subconscious spending increased. Using a credit card to make payments (28% more often, versus only 13% less often), charging monthly subscriptions directly to credit cards (21% more often, versus 14% less often) and adding additional items to get a “perk”, like free shipping (25% more often, versus 20% less often) were commonly cited areas for increased frequency.
Canadians 18-34 are the most likely to charge monthly subscriptions directly to credit cards compared to six months ago, yet are among the most concerned about their finances.
These three small changes can help you take a more mindful approach to money:
- Use cash when going out rather than credit or debit cards to be more mindful of spending.
- Create an honest, regularly reviewed budget to track where your money flows.
- Open a separate savings account specifically used for non-essential spending and linked to your debit card to regain control over subconscious habits.
Review your automatic spending regularly
With the rising cost of living, it’s more important than ever to be aware of where your money is going. Could you eliminate a streaming service you rarely use? How about a gym membership?
Be sure to look at all of your credit card charges each month. By reducing the number of automatic charges, you really can save some extra money – and every bit counts.
Have questions about boosting your savings habits or your mortgage in general? Answers are a call or email away!