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Financial literacy

Canadians already expect holiday spending stress

94% of Canadians are financially weary going into the holiday season with more than half planning to rely on credit cards

As the holiday season approaches, a startling 94 per cent of Canadians say they expect it to cause financial stress, according to a new survey from CPA Canada and BDO Debt Solutions.  

Nearly 40 per cent (39%) of respondents reported they expect to feel more financially stressed this year, while 55 per cent said they anticipate the same amount as last year. Additionally, 56 per cent of respondents suggest they’ll rely on credit cards to cover their holiday expenses.  

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Canadians are planning to spend eight per cent less this year on holiday gifts—an average of $595, down from $645 last year. 

“The notion that this should be a time of joy and generosity is sharply contrasted by the reality that many will start the new year in debt,” says Li Zhang, financial literacy leader at CPA Canada. “Given consumers are grappling with a consistently rising cost of living, it’s not surprising that the festive season has become a major source of anxiety.” 

Younger Canadians are feeling the pressure of holiday spending most acutely this year, with Millennials and Gen Z reporting the highest levels of holiday stress. Many respondents are also bracing for overspending: while most intend to maintain last year’s budget, 18 per cent admit they’re likely to exceed their planned limits. 

For some, travel is off the table this season, as 57 per cent of Canadians opt out of holiday trips. Among those who are traveling, the average anticipated expense has jumped by 33 per cent to $1,623, up from last year’s $1,219. Meanwhile, charitable giving is on the decline, with only 24 per cent planning to donate, down from 30 per cent last year. 

When it comes to funding holiday purchases, credit cards remain a mainstay. They are tied with savings and regular income as the most common way Canadians intend to cover seasonal expenses. Younger adults are particularly reliant on credit, with 59 per cent of those ages 18 to 34 leaning on credit cards to finance their holiday spending. 

“It’s concerning that more than half of Canadians are relying on credit cards for holiday expenses,” says Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions. “Using credit cards for holiday shopping may ease the immediate financial burden, but it can create a much bigger problem down the line if balances aren’t paid off quickly.” 

Quebecers are less stressed 

Quebecers are enduring holiday spending stress with more ease than the rest of Canada since 65 per cent of Quebec respondents say their stress levels are the same as last year.  

This year, Quebec consumers plan to spend $436 less than the national average of $2,825 on holiday gifts, travel and entertainment, leading most respondents from the province to report little worry about their finances.    

In line with all Canadians, more than half (57%) of Quebec consumers plan to rely on credit cards to fund their holiday expenses. Quebecers are however among the least likely to overspend or feel anxious about their spending. 

“With only eight per cent of Quebec respondents expecting high stress, the survey results suggest Quebecers are better at coping with the spending pressures of the holiday season,” says CPA Canada’s Chief Economist David-Alexandre Brassard. “The lower spending and focus on gift-giving reflects a more cautious approach this season, possibly indicating a greater sense of financial accountability amid the high cost of living.” 

Quebec consumers are setting a more conservative budget this holiday season than the national average. While Canadians overall plan to spend around $1,623 on travel, Quebecers anticipate keeping their travel costs lower, at $1,429. Similarly, Quebec respondents expect to spend less on gifts, budgeting $538 compared to the national average of $595. 

And yet, many Quebecers have plans to entertain, with 38 per cent intending to host a holiday celebration—suggesting a strong community focus and festive spirit might be the secret to a happier holiday season in the province.  

Survey methodology 

Leger conducted the 2024 Holiday Spending OMNIbus online survey from Sept. 27 to Sept. 29, 2024, among 1,626 randomly selected Canadians aged 18 and over.