CPA Canada peels back the wrapping paper to reveal Canadians' holiday spending habits

CPA Canada peels back the wrapping paper to reveal Canadians' holiday spending habits

According to an annual national survey conducted for the Chartered Professional Accountants of Canada (CPA Canada), most Canadians have spending goals in mind, but many haven't thought about how they will stay on budget.

Survey results show that Canadians plan to spend an average of $583 on gifts this holiday season, down from $643 last year, and almost half – 46 per cent – anticipate doing most of that shopping the "old-fashioned" way: in stores. Forty-two per cent of those surveyed did not set a budget for holiday spending, so sticking to those spending goals could be a challenge. This could also explain why one-in-five respondents anticipate overspending this year and nearly half say they experience added stress during the holidays.

"It's reassuring to see that Canadians have seasonal spending goals in mind," says Doretta Thompson, CPA Canada's Financial Literacy Leader. "With more than half of Canadians living paycheque to paycheque, even small financial miscalculations can have significant consequences. The good news is, it's never too late to start planning and monitoring your spending – it can go a long way to providing some peace of mind."

Unwrapping Canadians' spending habits this holiday season

CPA Canada's annual Holiday Spending Survey goes well beyond gift purchases, revealing deeper insights into how and where Canadians will spend their money this season.

• Many Canadians are likely staying home for the holidays this year, with 62 per cent of the survey respondents planning to spend less than $200 on travel expenses.
• We love to attend holiday parties, but 61 per cent of Canadians plan to spend less than $200 on parties and other holiday entertainment.
• Canadians remain committed to helping others over the holidays, with roughly 72 per cent of those surveyed plan on making charitable donations – only 21 per cent do not plan to make any holiday donations and seven per cent remain unsure.
• Despite the e-commerce boom, Canadians still rely on in-store shopping. In fact, 45 per cent expect to spend more in-store, while fewer than one in five Canadians plan to do most of their shopping online (18 per cent). Nearly a third of those surveyed will split their spending between in-store and online (31 per cent).
• We're a country of do-it-your-selfers, re-gifters and donors who looks beyond traditional presents, with 48 per cent of respondents planning to give different types of gifts, including: homemade (26%) and second-hand gifts (13 per cent), charitable donations (18 per cent) or a promise to do something for someone (13 per cent).
• Holiday stress is real. Almost half of Canadians say they have added stress during the holiday season.