Many Canadians expected to reduce holiday spending, with one-third to continue with charity donations: Survey

A new study suggests many Canadians feel holiday spending causes financial anxiety.

According to data from the BMO Real Financial Progress Index, 51 per cent of Canadians say even thinking about holiday spending increases financial stress. Many Canadians also believe it will take three months to pay off their holiday bills.

“The holidays are certainly a time to celebrate with loved ones, but the holiday parties, family gatherings, travel and gift exchanges can also pose a financial strain – especially during times of economic uncertainty,” said Gayle Ramsay, the Head of Everyday Banking, Segment & Customer Growth at BMO.

“The rising cost of living will be top of mind this holiday season, but planning early, using digital tools to conveniently set and monitor budgets, and working with an expert can help Canadians stay on track, alleviate financial anxiety, and enable them to continue making long-term real financial progress.”  

The survey conducted found 78 per cent of Canadians are planning on buying fewer holiday gifts this year. In addition, 45 per cent plan on spending less money, whereas 26 per cent will simply reduce the number of people they buy gifts for.

Just over one-third of Canadians are also reportedly not confident that they’ll be able to afford every item that’s on their holiday shopping list.

The Bank of Canada also conducted a recent survey which found similar findings to BMO, noting many households fear inflation could remain high.

BMO’s survey also found one-third of Canadians will contribute the same amount to charity as in previous years. Just over a third plan to contribute money and/or donate stocks, securities and/or mutual funds to charitable causes, whereas 16 per cent plan to volunteer.

“The holiday season often inspires us to spread hope to our communities, and strategic giving allows Canadians to be part of the change they want to see,” said Lydia Potocnik, the Head of Estate Planning & Philanthropic Advisory Services with BMO Private Wealth.

“For those who have the resources and would like to make meaningful contributions that will support progress in their communities, working with professionals will allow Canadians to be more thoughtful with their giving activities, donations and volunteer work.”

BMO says the survey was conducted between Sep. 11 and Oct. 9 and holds a credibility interval of +/- 2.2 per cent 19 times out of 20.