76% of Canadians More Likely to Reduce Holiday Spending Budgets Due to Rising Living Costs: Spring Financial Survey

Spring Financial survey reveals Canadians are feeling the financial pressures of holiday gift giving this year.

Spring Financial, a fintech company simplifying the lending process for everyday Canadians, released its 2023 Holiday Survey. This data highlights Canadians’ holiday spending perceptions and behaviours for the upcoming holiday season.

The survey demonstrates the impact of rising costs of living on holiday spending habits, with more than half of Canadians (58%) worrying about money and finances. While most Canadians (62%) say they will still be able to afford gifts, three-quarters (76%) agree that they are more likely to reduce their holiday spending budget due to rising living costs.

The Spring Financial survey also reveals that nearly seven in ten (68%) Canadians will be impacted by inflation this holiday season, with 12% not planning on giving gifts at all this year and more than half (56%) planning to spend less this year compared to 2022.

“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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Key findings from the survey include:

Stressful Spending

• When asked if Canadians were stressing more about buying holiday gifts this year compared to 2022, 44% of respondents agreed.
  • This number jumps to 55% among younger generations aged 18-34.

Thrifting & Gifting

• For Canadians worried about money and finances due to rising costs, alternative gift-giving practices are an effective way to keep holiday spending at bay.
  • Just over half (52%) of Canadians will consider alternative gift-giving practices such as homemade gifts or experiences due to rising costs.
  • Females are more likely to consider alternative gift-giving practices compared to males (60% females vs. 43% males)
  • 18-34 year olds more likely to consider alternative gift-giving practices compared to older generations (63% 18-34 year olds vs. 54% 35-54 year olds and 43% 55+)

Saskatchewan Squeeze

• Compared to other provinces, Saskatchewan residents are more worried about money and finances this holiday season (70% compared to national average 58%), with 61% saying they are stressing more about purchasing holiday gifts than last year.
• 78% of Saskatechewan residents say inflation has impacted their gift-giving plans this holiday season, roughly 10% higher than other provinces.
• 20% of respondents saying they will take out a loan/credit this holiday season, compared to the national average of 9%.

The findings from this survey demonstrate how consumer spending habits have shifted as a result of the current economic climate.

“Making smart financial decisions during the holiday season is crucial as Canadians set themselves up for financial success in 2024,” says Tyler. “Speaking to a professional about your options can allow you to navigate this turbulent time with ease and confidence.”

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