Survey finds that inflation & cost of living is impacting holiday plans
A recent Angus Reid survey conducted for Vancouver-based fintech Spring Financial found that inflation and the rising cost of living has wreaked havoc on Canadians’ holiday spending plans.
58% of respondents said they were worried about money and finances. 76% said they are more likely to reduce their holiday spending budget due to rising living costs. 38% said they would not be able to afford gifts.
12% of the Canadians surveyed said they were not planning on giving gifts at all this year. 56% plan to spend less in 2023 than they did in 2022. 68% of respondents lay the blame for these tighter budgets and cutbacks on inflation.
"There is a clear shift in consumer spending as a result of inflation and uncertain economic conditions,” says Tyler Thielmann, President & CEO of Spring Financial. “It is no surprise that this has trickled into holiday spending. Our Holiday Survey data reveals that although spending hasn’t reached a complete halt, Canadians are getting scrappy with how they are spending their hard-earned dollars.”
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With rising costs and cutbacks comes a greater degree of stress and mental anguish. 44% of Canadians said they were more stressed about buying holiday gifts this year compared to 2022. Among Canadians aged 18-34, the number feeling stress jumps to 55%.
Many Canadians are reverting to cheaper methods to give gifts. 52% of respondents said they would consider alternative gift-giving practices such as homemade gifts or experiences, citing rising costs. 60% of women said they would be likely to consider an alternative gift-giving practice, while only 43% of males would. Divided by age, 18-34 year olds are the most likely to give alternative gifts, followed by 35-54 year olds, followed by Canadians aged 55+.
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The province where Canadians felt the pinch most acutely was Saskatchewan.70% of Saskatchewan residents reported being more worried about money and finances, while 61% said they were more stressed about gift purchases. 78% of Saskatchewan residents agreed their gift-giving plans were impacted by inflation, 10% higher than other provinces.
“Making smart financial decisions during the holiday season is crucial as Canadians set themselves up for financial success in 2024,” says Tyler.
