CREDIT: CATLANE
With the cost of living higher than it’s ever been, experts expect Canadians will be pinching pennies this holiday season.

Canadians are looking to spend less this holiday season.

A recent study posted by BMO revealed a significant percentage of Canadians will cut back on holiday spending, with a third of participants saying they would give to charitable causes. Economic factors such as inflation and the continuous rise of the cost of living have caused many to rethink their spending habits this year.

“So, I’m definitely cutting back. I’m going to be doing a lot of things like making cards and making gifts and things like that because I think the quality could be better in a way,” said one local Fanshawe student.


The student said that sometimes what makes a gift special is the meaning that went into creating or finding it.

“[It’s] the emotions that are put into it. Hopefully, many people aren’t going to be spending a lot of money on it because nobody’s in a position right now with the inflation of everything.”

The study of Consumer Expectations by the Bank of Canada confirmed the results of BMO’s study showing that households believe inflation will stay high and force them to make large spending cuts. Canadians are becoming more aware of the importance of practicing financial caution, which is reflected in the trend toward lower holiday spending.

Even during the holiday season, households are forcing themselves to prioritize savings and cut back on unnecessary shopping whether it’s for the holidays or free time.

In other ways though, people who are crazy about the holidays absolutely enjoy shopping for others.

“I love Christmas and I love giving gifts to people, so I actually have a separate account to put money aside throughout the entire year for Christmas gifts,” the student added. “I don’t have many people to give to, so it’s not like I’m down on money or I’m scared about it. I put aside a good amount for everyone in my life for the whole year to come to this point.”

She said that a focus on moderation in spending does not imply a lack of festive spirit. Alternative celebration methods like potluck events and homemade gift exchanges are becoming more popular in Canada.

They say that the move towards sustainable festivities and meaningful experiences are in line with the changing values of a large number of Canadians.