And spending will be constrained in 2024 too according to new polling
With Christmas just a week away, Canadians are keeping tighter reins on their finances according to research by Nanos.
More than half of respondents to its recent poll said they will be spending less this holiday season than last year, with one in four spending around the same. Those aged 33-54 are most likely to be cutting back on spending on gifts, although Ontarians are least likely among all respondents to be reducing spending.
Compared to last year, nearly one in two Canadians will spend about the same on food at home but more than three in five aged 18 to 34 (62%) and 35 to 54 (63%) will be spending less on going out to social event, along with around half of over 55s.
Overall, Canadians are 13 times more likely to spend less than more this holiday season.
2024 spending
Spending constraints are looking like being a feature of 2024 too with a BMO poll revealing nearly a third of Canadians plan to cut back on spending for 2024 amid growing concerns about the cost of living and economic uncertainty.
They may be starting the New Year with increased debt though with over half planning to use credit cards to pay for their holiday gifts and an expectation that it will take three months to pay back these holiday bills on average - although 24% are not confident they will be able to pay off their post-holiday bills on time.
Most respondents do not currently have a financial plan (69%) and/or a household budget for the year (60%).
However, 68% have set financial goals for themselves, including retirement planning (59%), saving for a vacation (46%), paying down debt (39%) and saving for a large purchase such as a car, large appliance, etc. (36%).
"While many Canadians are looking forward to celebrating with family and loved ones, it is important not to get financially carried away during the holidays," Gayle Ramsay, Head, Everyday Banking, Segment & Customer Growth, BMO. "As many look forward to a fresh start in the new year, we want to empower Canadians to make real financial progress by encouraging them to get a head start on defining their financial goals, take advantage of online banking tools to conveniently set and monitor budgets, and work with a financial advisor to help build a plan and establish good financial habits."
