Survey Reveals Canadians Tightening Budgets Ahead of Holiday Season
The rising cost of living is expected to put a chill on holiday spending this year.
A new survey by insolvency firm Harris & Partners released Tuesday shows most respondents are preparing for a more modest Christmas.
Almost 72 per cent of the 1,820 Canadians surveyed by the company in November said they will cut back on Christmas spending this year and 85 per cent expect to set a strict budget for the holiday.
“For a large number of people, there is simply less financial flexibility available,” CEO Josh Harris said in a news release. “Christmas remains an important time for connection and celebration, but this year it will look different for many households.”
The report comes as the economy struggles with U.S. and Chinese tariffs that have taken their toll on businesses and inflation continues to eat away at household budgets.
Canadians appear to be feeling stressed about the situation, especially as Black Friday, Cyber Monday and December festivities near.
The survey found about 62 per cent of respondents do not feel financially prepared for the holidays and 53 per cent have anxiety about affording them.
For some, those feelings come from the difficulty they face when trying to save and the lack of wiggle room they find in their budgets.
“Canadians are not avoiding saving because they are unwilling to prepare,” Harris said.
“Many simply do not have the room to set funds aside until they are right up against when the costs appear. Month-to-month budgeting has become the norm.”
Harris recommended Canadians worried about the financial pressure of the holidays set realistic budgets, start planning early and seek financial guidance, if needed.
This article was first reported by The Canadian Press
