TORONTO — A new TD survey suggests Canadians are taking a more cautious approach to summer spending in 2026, with rising fuel prices and broader cost-of-living pressures reshaping travel plans and household budgets.

According to the survey, 35% of Canadians plan to spend less this summer, while 44% say higher fuel costs are influencing their travel decisions.

The findings point to growing financial pressure on consumers as transportation, housing and everyday essentials continue to absorb a larger share of household spending.

BUDGET-CONSCIOUS SUMMER SPENDING

Among Canadians cutting back this summer, 40% cited higher transportation costs as a key factor, while 62% said they are redirecting money toward essentials such as groceries, fuel and housing.

The survey also found Canadians are adjusting spending habits in a variety of ways, including redeeming loyalty points and seeking lower-cost alternatives.

Forty-four per cent said they plan to use loyalty points this summer, while 36% are opting for budget-friendly choices such as do-it-yourself options or second-hand purchases.

“Summer comes with a lot of expectations and spending can add up quickly,” said Sumaiya Bhula, Senior Manager, Saving and Investing Journey at TD. “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.”

CLOSER-TO-HOME TRAVEL

Travel remains one of the areas most affected by rising costs, according to the survey.

Among Canadians planning to travel this summer, 61% said they are actively trying to reduce travel expenses, signalling a shift toward more budget-conscious trip planning.

Domestic travel continues to dominate summer plans, with 76% of respondents intending to travel within Canada. Of those, 55% plan to explore destinations within their own province, while 41% are travelling elsewhere in the country.

The survey also highlighted strong Canadian sentiment, with 79% of respondents planning to support local or Canadian business this summer while 48% said doing so is a stronger priority than it was last year.

“Local businesses are the heartbeat of our communities and it’s encouraging to see Canadians choosing to explore their own backyards,” said Julia Kelly, Vice President, Small Business Banking at TD. “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.”

TRAVEL INSURANCE CONCERNS

The survey also revealed concerns around travel preparedness and insurance coverage.

Nearly half of Canadian travellers surveyed (46%) said they do not plan to purchase travel insurance this summer, while 29% said they could only cover up to $300 in emergency travel costs without insurance.

“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,” said Patricia Foley, Associate Vice President, Life, Health & Credit Protection at TD. “Having the right travel insurance coverage could help protect your finances and your trip, allowing you to travel with greater confidence.”

GEN Z SPENDING

Younger Canadians appear to be approaching summer spending differently than older generations.

The survey found Gen Z respondents were the most likely group to increase summer spending, with 24% planning to spend more this season. Social pressure was identified as a major influence, with 32% of Gen Z respondents saying it impacts their summer spending decisions – more than double the national average (14%).

Popular spending categories among Gen Z respondents included travel (24%), dining out (29%), events like concerts, festivals and sporting events (22%) and FOMO (fear or missing out)-driven experiences (30%).

“Social media can sometimes make it feel like you have to say yes to every experience,” said Jeet Dhillon, Senior Portfolio Manager, TD Wealth. “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.”