When the cost of almost everything is on the rise, it can be hard for young Canadians to imagine setting aside money for the things they want, rather than just their basic needs.
However, spending on the “fun” things in life isn’t an impossible task for Millennials and Gen Z, experts say — it might just require some sacrifice and a fresh perspective.
“What we’ve been used to in the past is completely different from what we see today,” observes Barry Choi, personal finance, travel and money expert for millennials at moneywehave.com.
“Being able to travel and eat out while still allowing yourself to live comfortably is becoming more and more difficult, and with the anxiety of missing out that many may feel with what people post online, it’s understandable that so many young people have the feeling behind in terms of savings and enjoyment. »
Succumbing to this kind of pressure — often from multiple sources, including family members and socially ingrained ideas of “success” — is something Jesse Kennedy, a 34-year-old Montreal resident, says he’s been. forced to overcome in recent years.
While in his twenties, Mr. Kennedy held various jobs in the Prince Edward Island restaurant industry. During those eight years, his paychecks and tips were spent as soon as they reached him.
“Because I was paid cash, I would walk into a clothing store and spend $350 on a couple of pants and a couple of shirts, and I didn’t even think twice about it,” Mr. Kennedy recalled. I told myself that I could start all over again next weekend. »
However, over time Mr. Kennedy realized that he would need to make some serious changes if he was to achieve financial stability. He went back to college, held multiple jobs at once to pay off his debts, and managed to buy a condo in Charlottetown, all while finding a way to save and spend for fun.
“Fortunately, I was in a province with a lower cost of living, which gave me the opportunity to do all these things,” he says, “but for me it was really a question realize what was important to me at that time, manage my expectations, and make my financial decisions based on that. »
Mr. Choi echoes this sentiment by emphasizing that the most important aspect of spending non-essential pleasures is achieving what is realistic given the situation, and managing one’s expectations accordingly. Spending on things like travel, entertainment, and eating out is certainly possible, but exactly how much one spends on these things depends almost entirely on the individual.
“If you live in a big city, like Toronto or Vancouver, you have to spend more money on living expenses,” he notes. And if you want to buy a house sooner, you also need to prioritize accordingly – because the simple reality is that every time you spend on something fun, it gets in the way of investing it in something you need. need. »
Choi says that means understanding that you can’t go on vacation once a year, like your parents did, or eat out twice a week like your richer friends might – but it doesn’t. does not mean that the average young Canadian has to deprive himself of absolutely everything.
“Even if you only save a small amount for fun things, something like $50 a month can afford a great vacation after two or three years,” he adds.
In fact, Choi stresses the importance of having the kinds of experiences that are only possible when you’re young – like traveling a lot without the stress of a full-time job or going out on weekends without having to to worry about looking after the children.
“Finding ways to get the experiences you want…is a great way to make sure you don’t miss out on life just to accumulate a bigger RRSP,” says Choi.
Looking for paid jobs overseas or being smart with finding entertainment and dining discounts are two things Choi recommends. However, he feels that finding a way to make his hobbies cheaper is probably the best solution.
“If you like to eat out, that’s great, but maybe it would be more economical for someone with a sweet tooth to learn how to cook,” he says. But of course, it always comes down to what is most important to you and what you are ready to do without or not. »
It’s something Mr. Kennedy took to heart, especially during the early years of his career in finance. Although he once and for all made sure to cut down on frivolous spending and pick up inexpensive hobbies, he notes that he still managed to find ways to splurge on what’s important to him. , including a trip to Bali, where he was able to meet the extended family of the person with whom he shares his life.
“The trip was quite expensive, but I wouldn’t change it, because we both had this incredible experience that we probably could only do in that time of our lives, and it was also encouraging because it was the first time I allowed myself to do something like that financially,” he recalls.
“So I think it really depends on what you’re going to get out of your spending – tangible, but also emotionally. »
