Canada Day is a big spending holiday for Canadians

Canadians will be getting out their red and white this Canada Day—and apparently their wallets, too.

According Interac Association, people tend to spend more during the summer months, especially around long weekends, than in the winter. And compared to other holidays, July 1 is a day to splurge.

Last Canada Day, people across the nation spent $2.52 billion with their debit cards. That compares to $2.49 billion spent on civic holidays, $2.45 billion on Victoria Day, and $2.29 billion on Labour Day.

During last year’s July 1 long weekend, people’s hard-earned cash went toward groceries, discount stores, dining out and drinking.

Canadians spent more than $508 million at grocery stores, representing 20.1 per cent of total spending that weekend. They spent over $173 million at discount stores (6.8 per cent of total spending) and more than $133 million at restaurants (5.3 per cent of total spending).

And they doled out more than $97 million at beer, wine, and liquor stores (3.8 per cent of total spending).

“These numbers confirm what most of us already know—Canadians spend their long weekends eating and on the go,” says Teri Murphy, Interac Association’s director of corporate communications.

All told, Canadians spent more than $56 billion dollars using debit last summer, compared to $51 billion during the winter.

December 23 was the busiest shopping day of 2014 (the most recent data available), with Canadians spending close to one billion dollars on debit.  They spent over $199 million at grocery stores, over $87 million at discount stores, and more than $67 million at wine, beer and liquor stores.

To avoid ending up in the red, it’s important to set a budget and stick to it. Using debit is an obvious advantage over credit: you typically only spend what you already have and can track purchases in real time (but beware of overdraft if you have it).

Other ways to party down on Canada Day without overspending:

• Know when a deal is a deal. Holidays tend to come with sales, but you need to do your research before being tempted into buying that new fire pit or patio furniture. “Often stores will advertise something at 50 per cent off, but it’s 50 per cent off a price they would never sell it at in the first place,” says Eithne Whaley, senior editor of the blog at SmartCanucks.ca, a deal-finding site. “Often stores put items in the flyers priced higher than their usual selling price.”

• Check your community calendar for free events. Parades, concerts, and other live entertainment will be on offer from coast to coast.

• Fire up the barbecue, go for a picnic in the park, or have a potluck rather than eating out. “Before you make a trip to the grocery store, make a list of the items you need based on the recipes you plan to cook to prevent picking up unnecessary extras,” Murphy says.

• Try not to get carried away. You might get into the Canada Day spirit, but do you really need a red-and-white beach umbrella or a new outfit? “Impulse buying is probably a big part of why we’re so indebted,” says Consolidated Credit Counseling Services of Canada executive director Jeff Schwartz. “Maybe pick a budgeting app so you can see how much you’re spending and how much you have in your bank account.”