A collection of year-end surveys show that Canadians are taking different approaches to holiday spending in light of tight budgets, with some cutting back to buy essentials, others turning to credit, and some even taking on an extra job to bring the holiday cheer.
More than a third (36%) of Canadians plan to spend less this Christmas, with 60% of those cutting back saying that groceries and other essentials will account for at least half of their total spend this winter holiday season, according to a TD survey.
Among those cutting back, two-thirds (67%) blamed the higher cost of living.
Over three-quarters (77%) of respondents said they were prone to overspending, but only 24% had enough extra income to cover the expenses, the TD survey found.
At the same time, a CPA Canada survey found that younger Canadians are relying on credit to fund Christmas expenses. Two-thirds of those aged 18 to 34 planned to spend more than last year and 58% will rely on credit, according to the survey.
“This suggests that many younger Canadians are feeling the pressure to spend, even if that means stretching their budgets a little too far,” Li Zhang, CPA Canada’s financial literacy leader, said in a statement. “But relying on credit in the short term can quickly turn that joy into stress in the new year without a repayment plan.”
Alternatively, some Canadians set up dedicated savings for the season (26%), used loyalty points (24%) or took on an extra job (11%), the TD survey found.
Parents may also feel the winter holiday spending squeeze. More than half (56%) of parents said their budget is too tight to afford what their children want, according to an RBC survey. Still, 45% felt pressured to buy more for their kids than they could afford.
“This can place parents in a particularly uncomfortable position at this time of the year,” the RBC report noted, adding that parents cited the high cost of living as an added stress.
Still, two-thirds of respondents stated they have or would sacrifice their own financial future to spend what they can on their children today, with 41% having already dipped into their savings or emergency fund and 33% have taken on debt to cover family costs, the RBC survey found.
On the flip side, 68% of those aged 55 or over plan to maintain last year’s spending levels, according to the TD survey. And 70% of the older Canadians said they will rely on savings and regular income rather than credit.
Spending also varies by geography. Nationwide, Canadians plan on spending $975 this Christmas, similar to 2024, according to a Retail Council of Canada survey. While Albertans will spend $1,193 (up 23% compared to 2024), Quebecers will only spend $620 (down 20%). Ontarians and Maritimers will be holding steady at $1,095 and $912, respectively.
Harris Poll conducted the TD survey between Oct. 23 and 27, with a nationally representative sample of 1,516 Canadian adults.
Leger conducted the CPA Canada online survey from Oct. 17 to 19, with 1,594 randomly selected Canadians adults.
The RBC survey involved 1,514 Canadian adults who are members of the Angus Reid Forum with at least one child under age 18, and was conducted between Jul. 9 to 15.
The Retail Council of Canada surveyed 2,500 Canadian adults in October.