More than half feel unprepared and over 70 % plan to spend less than last year
Many Canadians will be tightening their belts this festive season, with financial concerns set to keep budgets in check.
A new report from Harris & Partners Inc. surveyed 1,820 Canadian households and reveals that 62% say they are not financially ready for Christmas with 71.5% of respondents expecting to reduce their spending compared with last year and 53% feeling anxious about being able to afford the season.
Nearly half say they’ve already set aside some savings for the festive period, but just 14% intend to borrow or use credit to fund their Christmas, showing a clear move away from debt-funded celebrations, although this may not be by choice.
"Some households are choosing to avoid debt, which is positive,” says CEO Joshua Harris. “However, for others, the option to rely on credit may no longer be available. This leads to reduced spending and, in many cases, increased stress around meeting expectations during the holidays.”
The report also shows that many households are adapting by focusing on simpler traditions such as homemade gifts, potluck meals, and smaller gatherings, rather than lavish spending.
“For many, Christmas has become a budgeting challenge rather than a carefree celebration. Financial stress now sits alongside seasonal joy,” adds Harris. “These figures show a meaningful change in how Canadians are approaching the holiday season. Many families are still working through the effects of high living costs, and for a large number of people, there is simply less financial flexibility available. Christmas remains an important time for connection and celebration, but this year it will look different for many households."
Another recent report found that Canadians are now so financially stretched that nearly half are within $200 of being unable to pay their bills each month, with many forced into “heat or eat” decisions as household budgets buckle under economic pressure.
