Survey Finds Majority of Canadians Planning to Cut Back on Holiday Spending Due to Rising Costs

October 16, 2024 TruthUSA

According to a new survey, over 75% of Canadians are planning to tighten their budgets this holiday season due to increasing economic challenges.

Research by Givex shows that more than 70% of Canadians have adjusted their gift-giving plans due to inflation, with 76% expecting to spend less on holiday shopping this year compared to last. Additionally, 57% of respondents anticipate spending more on groceries during the holiday season.

Givex president Brittain Brown stated, “The impact of inflation remains a critical factor in influencing consumer behaviour this holiday season.”

The study indicates that younger Canadians, especially those aged 18-34 and 35-54, are more likely to alter their gift plans due to higher costs.

Furthermore, the survey found that over 75% of Canadians may reduce their spending at restaurants during the holiday season, with an average budget of around $200 for dining out.

On average, Canadians plan to spend $290 on holiday gifts, with 30% willing to spend $400 or more. Despite financial constraints, Canadians are projected to spend an average of $750 on non-essential items such as gifts, travel, dining, entertainment, and charity.

The online survey conducted among 1,525 Canadians by the Angus Reid Forum revealed that 28% of respondents plan to spend at least $200 on gift cards this year, up 8% from the previous year.

Furthermore, there is a growing interest in holiday gift cards, particularly credit card gift cards. Albertans and Atlantic Canadians prefer credit card gift cards, while Manitobans opt for gift cards for necessities like groceries and gas.

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