It’s not just turkeys and presents, the majority of Canadians are managing other debts this holiday season

Holiday debt concerns

Gen X is the most affected by debt, with 61% noting it will limit their holiday spending.

Boomers are the most likely to tap into savings (45%), likely due to fixed incomes and a desire to avoid high-interest debt. In contrast, Millennials and Gen Z show lower intent to use savings (29% and 25%, respectively), often due to limited funds or competing financial priorities, such as student loans.

Residents of Ontario and BC are the most likely to dip into savings (42% and 39%, respectively), likely due to the higher living costs in these regions, while those in the Prairies and Atlantic Canada are less likely to do so, with only 28% planning to use savings, possibly relying on credit instead.

Having a budget can help mitigate the risk of piling on more debt. Boomers are the most diligent in budgeting, with 55% setting a holiday budget and 68% tracking their expenses. Millennials, while excellent at tracking (72%), prefer flexibility, with only 38% setting a predefined budget. Gen Z has the lowest rate of budgeting at 29%, though 54% are tracking their expenses, signaling an increasing awareness of financial management.

Regional differences also emerge, with Ontario and BC residents being the most likely to set a budget (46%), likely for the same reason they dip into savings. In contrast, Quebec and Atlantic Canada show lower budgeting rates, with 34% and 31%, respectively. Prairie residents, however, lead in expense tracking, with 68%, reflecting a more cautious approach in response to local economic conditions.

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Canadians are still buying gifts and travelling, regardless of their existing debt

Despite these debt concerns, 36% of Canadians plan to use their savings for holiday shopping, while 35% plan to cut back on holiday spending.

Almost all are undeterred from any spending, with 96% set to spend on gifts, with an average budget of $534. Holiday travel is also a priority, with 74% planning trips at an average budget of $412.

Atlantic Canadians are the most generous, budgeting an average of $698 per person, while Quebecers have the smallest average gift budget, at $440. According to the report, Ontario and BC residents are the most committed to gift-giving, showing strong intent to buy gifts, while those in the Prairies are more likely to scale back on their gift budgets, likely due to financial caution.

Millennials are the top spenders, planning to spend nearly $600 on gifts, while Boomers are allocating around $470.

Despite financial strains, Canadians still want to give back

In news that will warm the heart of even the most cynical, charitable giving remains strong among Canadians, despite the cost-of-living crisis, with 72% planning to give during the holidays, averaging $187 per person.

Boomers are the leading demographic in charitable giving, averaging $210. Gen Z, however, plans to donate the least, with an average of $120. BC residents are the most generous, averaging $200 per charitable donation.

Survey methodology

These findings are from a survey conducted by Neo Financial from October 29 to 31 in English and French, among a representative sample of 1,521 online Canadians who are members of the Angus Reid Forum.