A shopper reviews a receipt at Toronto’s Fairview Mall during Black Friday sales on November 28, 2024. The Canadian Press
Many Canadians are planning to tighten their budgets this Christmas as the cost of living continues to rise. A new national survey shows that financial strain is leading many households to scale back on festive spending this year.
The study, conducted by Harris & Partners, found that almost 72 per cent of the 1,820 Canadians surveyed intend to cut their holiday expenses. The results paint a clear picture of how inflation and higher daily costs are shaping spending habits as the holidays approach.
Fewer Dollars for Gifts and Celebrations
Canadians appear to be adjusting their expectations for the holiday season. Many say they plan to buy fewer gifts, limit travel, or spend less on parties and outings.
About 62 per cent of respondents admit they don’t feel financially ready for the holidays. More than half — 53 per cent — say they feel anxious about being able to afford Christmas this year.
For some, the rising price of food, housing, and essentials has left little room for extras. Families are looking for ways to celebrate without stretching their already tight budgets.
Expert Says Budgets Are Strained
Joshua Harris, the managing partner behind the survey, says these findings highlight how much pressure everyday Canadians face when it comes to managing expenses.
“Canadians are not avoiding spending because they are unwilling,” Harris explains. “They simply don’t have the room in their budgets to set aside cash for the holiday.”
He adds that many people are trying to maintain holiday traditions while still covering essential costs, such as bills, rent, and groceries. For most households, there is little flexibility left for discretionary spending.
Changing How Canadians Celebrate
The report suggests that this year’s celebrations may look different from those in the past. Some families plan to focus on smaller gatherings and homemade gifts, while others are looking for ways to share experiences rather than buy expensive presents.
Experts say this shift could encourage more meaningful celebrations, with Canadians prioritizing time with loved ones over large spending sprees. Many are also turning to discount retailers, second-hand shops, or sales to stretch their dollars.
Harris notes that while the spending slowdown may reflect financial stress, it also shows Canadians are adapting to economic realities with caution and responsibility.
Economic Pressures Still Rising
Over the past year, higher grocery bills, rising mortgage costs, and interest rate hikes have affected household budgets across the country. For many families, these increases have made it difficult to save or plan for extra spending.
With inflation continuing to influence prices, experts predict that Canadians will remain cautious not only during the holidays but well into 2026.
