94% of Canadians expect holiday spending to cause financial stress

Over half will rely on credit card to fund it

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October 30, 2024 — 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.

Compared to last year, how stressed are you feeling about your spending heading into the holiday season?

Survey results graph 01

Additionally, 56 per cent of respondents suggest they’ll rely on credit cards to cover their holiday expenses.

How do you expect to pay for your holiday spending?

Note: these results are non-additive.

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.”

Li Zhang, financial literacy leader at CPA Canada

Nancy Snedden portrait

“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.”

Nancy Snedden, National Leader of BDO Debt Solutions

Other stand-out findings:

Generational stress: Stress peaks among younger generations—Millennials and Gen Z report feeling the highest levels of stress during the holiday season.

Expecting to overspend: While most respondents plan to maintain the same budget as last year, 18 per cent said they are likely to overspend.

Credit card crutch: Credit cards were tied with savings and regular income as the primary way Canadians planned to finance their holiday spending. Younger generations mostly feel the weight of this burden, with 59 per cent of respondents ages 18 to 34 relying on credit cards.

To travel or not to travel: 57 per cent of respondents are choosing not to travel this holiday season—with those who do plan to travel expecting to spend an average of 33 per cent more at $1,623 compared with $1,219 last year.

Not feeling philanthropic: Only 24 per cent of respondents intend to donate to charity this holiday season, reflecting a drop in generosity from last year’s 30 per cent.

Compared to last year, do you plan on spending more, the same, or less?

Survey results graph 02

Survey methodology

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

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For the full survey results including regional breakdowns or to schedule an interview, please contact:

Cindy MacDonald
[email protected]
(902) 536-0635