Data Sheet

Executive Summary

As people in Canada continue to struggle with the challenging economic environment, we’re seeing a concerning holiday spending ‘domino effect’ triggered by the added financial stress of the holiday season.

Canada’s largest federal financial cooperative and Certified B Corporation, Coast Capital, has released a new study that explores this domino effect and its impact on people’s ability to achieve their short- and long-term financial goals. The credit union aims to shed light on how challenging it is for people in Canada to get on stable ground, especially when faced with the pressures of the holiday season.

The study, which polled a sample of 1,683 online Canadians, and was conducted among members of the Angus Reid Forum,  found that 55 per cent of people in Canada report being a long way from achieving their financial goals, citing inflation, lack of savings, household debt, and low incomes as the top factors holding them back. Holiday season spending pressures will only exacerbate financial stressors for the vast majority of Canadians; however, few are planning to set a formal budget for their spending. In fact, more than half of individuals already experiencing high financial stress are prepared to incur debt to cover holiday expenses, leading to further delays in short- and long-term goals.

With this survey, Coast Capital’s goal is to empower people in Canada to take control of their finances this holiday season. By understanding their spending behaviours and taking steps to mitigate the impact of holiday spending on their financial goals, Canadians can set themselves up for success as we approach 2025 and build a better financial future.

The Data

Holiday spending will intensify financial stressors for Canadians.

• Money is impacting the mental and emotional well-being of 44 per cent of people in Canada, with many feeling either anxious (30 per cent) or stressed (28 per cent) about their financial situations.
  • 49 per cent of respondents say money is always on their mind.
  • 22 per cent say it keeps them up at night.
• The majority of Canadians (60 per cent) have not seen increases to their incomes over the past 12 months, while the cost of living continues to rise.
• 72 per cent of Canadians say that holiday expenses are intensifying financial pressures.
  • Pressure is significantly more likely to be felt by those aged 18-34 (84 per cent).
• More than half (59 per cent) of individuals facing high financial stress are prepared to incur debt to cover holiday expenses.

But they aren’t making adjustments to their spending plans or behaviours.

• 94 per cent of Canadians plan on purchasing gifts for others, alongside other expenses like:
  • Entertaining, parties, outings (86 per cent).
  • Holiday decor (52 per cent).
  • Charitable donations (51 per cent).
  • Holiday related travel (46 per cent).
  • Gifts for themselves (33 per cent).
• 79 per cent of respondents don’t plan to set a specific budget for their spending.
• 41 per cent do not feel the need to discuss holiday spending with others, whether to suggest alternatives like lower-cost gifts or experiences or to manage expectations.
• 60 per cent of respondents plan to spend the same amount during the holidays in 2024 as they did in 2023, while 12 per cent plan to spend more than last year.
  • Those feeling high pressure plan to spend an average of $1,201.30, compared to $1,109.40 by those under moderate pressure, and $996.70 by those under low pressure.
  • Those planning to take on debt for holiday spending expect to spend an average of $1,197, which is higher than the $1,046.30 planned by those not relying on debt.
• Those earning less than last year still plan to spend an average of $982.90, while those with unchanged earnings estimate spending around $956.10.

Which will further delay their short- and long-term financial goals.

• 55 per cent of Canadians report being a long way from achieving their financial goals, citing inflation, lack of savings, household debt and low incomes as the top factors holding them back.
  • 16 per cent of Canadians believe that they will never achieve their financial goals.
• 47 per cent of Canadians report that holiday spending will cause them to fall further behind on their financial goals.
  • 66 per cent of the 18-34 age group will have their financial goals delayed by holiday spending.

From The Expert: Xin Lou

There are a number of ways that Canadians can mitigate some of the impacts of holiday spending and set themselves up for success as we head into 2025. Xin Lou is a financial advisor at Coast Capital with over a decade of experience in the field. He points to five key tips for approaching holiday spending while also staying on track with longer-term financial goals:

1. Create a holiday spending budget. This will help you figure out what you can spend this holiday season while staying within your means.
2. Make a no debt commitment. If you can’t purchase without putting it on a card or a line-of-credit that won’t be paid off quickly, think twice before buying. This way, you don’t have to worry about lingering holiday debt in the new year.
3. Be loud and proud about your budget. De-stigmatizing conversations about finances and normalizing transparency when talking about money can do wonders for your wallet. This could mean setting expectations with family and friends for what the holidays might look like this year, such as exchanging fewer gifts or narrowing down the number of outings.
4. Embrace creativity. Maybe you can’t buy another Secret Santa gift or go out for a fancy meal, but you might be able to swing a potluck dinner at home or a coffee and a walk through a free light display. Find a balance that will work for you and your finances, while still enjoying the season’s traditions!
5. Think beyond December. With knowledge comes power. Consider booking an appointment with a financial advisor to get advice tailored to you, your goals and your circumstances.

Additional Information

For more information, please contact:

Cristina Melo, Citizen Relations, cristina.melo@citizenrelations.com | 604-612-4468

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About this survey

The findings are based on a survey conducted between [October 22 – October 28], among a representative sample of 1,683 Canadian adults, separated into quotas of 500 in the Lower Mainland, 200 in Kelowna, 150 in Vancouver Island, and 833 in ROC.  All the participants are members of the Angus Reid Forum. The survey was conducted in English and French. The precision of Angus Reid Forum online polls is measured using a credibility interval. For comparison purposes only, the sample plan would carry a margin of error +/- 3.1 percentage points, 19 times out of 20. Discrepancies in or between total are due to rounding.