Rising prices are casting a shadow over the holiday season for a vast majority of Canadians. A new national poll reveals that 78% of Canadians report that inflation will affect their holiday spending this year, forcing difficult financial decisions for families across the country.
Where Canadians Are Cutting Back
The survey, conducted by Money Mart and Angus Reid, found that a significant 37% of respondents plan to cut back on their overall holiday expenditures. Among those making cuts, the data shows a clear pattern of prioritization and sacrifice.
Four in five of these individuals will reduce spending on gifts. Beyond presents, many are scaling back in other key areas of seasonal spending:
- 56% will spend less on retail shopping.
- 48% plan to cut back on dining out.
- 45% will reduce their entertainment expenses.
Financial Stress and Generational Impact
The financial pressure is palpable for many. The poll, which surveyed 1,511 Canadians online between October 14 and 16, 2025, found that 43% of people worry about balancing holiday costs with their everyday expenses.
Perhaps more concerning is that 28% of respondents are not confident they could handle an unexpected expense, such as a car repair or home emergency, during this already costly time of year.
This financial anxiety is not felt equally across generations. Younger Canadians are feeling the pinch more acutely, with 53% of Gen Z and 48% of Millennials expressing concern about balancing holiday and everyday costs. This compares to 34% of Boomers who share the same worry.
A Tough Time of Year for Budgets
Peter Kalen, CEO of Money Mart, commented on the findings, stating, "Canadians are financially savvy, but the holidays can stretch even the most careful planners." He noted that the combination of added expenses, gift-giving pressure, and potential unexpected costs creates a particularly stressful financial situation for many households.
For comparison purposes, the pollster noted that a probability sample of this size would carry a margin of error of 2.5 percentage points, 19 times out of 20. The results paint a clear picture of a Canadian public adapting its traditions and celebrations in response to persistent economic pressures.
