Conducted among 1,521 Canadians, The 2024 Canadian Holiday Affordability Report by Neo Financial and Angus Reid, reveals 64% of Canadians are managing at least some debt, with 54% saying it will affect their holiday spending plans
CALGARY, Alberta & WINNIPEG, Manitoba & TORONTO, December 17, 2024–(BUSINESS WIRE)–Although overall inflation in Canada might be cooling, millions of Canadians still struggle with day-to-day necessities like food, gas, and rent. As people start to plan for holiday shopping this year, Neo Financial and Angus Reid polled Canadians on how long-standing financial pressures in this country will impact their ability and desire to spend. The 2024 Canadian Holiday Affordability Report provides insights into holiday budgeting, spending behavior, and evolving financial attitudes of Canadians as they head into the festive season.
Key insights from the survey include:
Banking Preferences:55% of Canadians would rather shovel snow after a storm than visit their bank for an appointment or transaction, and 76% would prefer to do household chores over a bank visit for an appointment or transaction.
Debt concerns weigh heavily, as 64% of Canadians enter the holiday season with existing debt, and 28% carry over $5,000 or more.
Despite debt concerns, 36% of Canadians plan to use their savings for holiday shopping, highlighting a cautious approach to holiday expenditures.
35% of Canadians intend to cut back on holiday spending, primarily due to inflation, rising living costs, and personal debt.
96% of Canadians plan to spend on holiday gifts, budgeting an average of $534.
41% of Canadians have set a holiday spending budget, while 62% are actively tracking their expenses this season.
Holiday travel remains a top priority, with 74% planning trips and allocating an average of $412.
Charitable giving remains strong, with 72% of Canadians planning to donate during the holidays, averaging $187 per person.
Credit card rewards play a pivotal role in holiday spending strategies, with 77% of Canadians collecting points, but only 38% find them useful for managing holiday expenses.
“Canada is in a cost of living crisis, which is why we’re focused on providing long-term, sustainable ways for Canadians to save more of their time and money” said Jeff Adamson, CCO and Co-founder of Neo Financial. “We’ve seen that 35% of Canadians plan to reduce their holiday spending this year, and we’re committed to being part of the solution by providing top-tier cashback cards, no-fee banking, and leading high-interest savings rates.”
A deeper dive into the key insights presented above is shared below.
Debt Concerns & Holiday Spending Debt concerns are a significant burden for Canadians heading into the holiday season:
64% of Canadians report carrying some form of debt, with 28% carrying over $5,000 in outstanding balances.
Gen X is the most affected by debt, with 61% noting it will limit their holiday spending, while 36% of Canadians plan to use their savings for holiday shopping, reflecting a cautious approach to managing their expenses. 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 British Columbia 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.
Despite debt concerns, 36% of Canadians plan to use their savings for holiday shopping, highlighting a cautious approach to holiday expenditures.
Boomers lead the trend, with 45% indicating they will tap into their savings, reflecting a conservative financial approach, likely influenced by fixed incomes and a preference for avoiding credit card debt. On the other hand, Millennials and Gen Z show lower intent to use savings, at 29% and 25%, respectively, often citing limited cash reserves or competing financial priorities such as student loans and rising living costs.
Ontario and British Columbia residents are most likely to use their savings (42% and 39%, respectively), likely driven by the higher cost of living in these regions, pushing them towards more cautious spending strategies. Whereas residents of the Prairies and Atlantic Canada are the least likely to use savings, with only 28% planning to do so, suggesting a higher reliance on credit or alternative financing methods.
54% of Canadians say debt will directly affect their holiday plans, leading to a more cautious approach to budgeting this year.
Budgeting for Holidays Generational and regional insights reveal differing approaches to holiday spending management:
Gift Spending Intentions Despite economic pressures, Canadians remain committed to holiday gift-giving:
96% plan to buy gifts, allocating an average budget of $534 per person.
Atlantic Canadians are the most generous, budgeting an average of $698 per person, while Quebecers have the smallest average gift budget, at $440. Ontario and British Columbia 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.
Regional differences show Ontario and British Columbia with strong gift-buying sentiment, while Prairies residents are more likely to cut back on their gift budgets.
Travel Spending Holiday travel remains a priority for many Canadians, despite rising costs:
Charitable Giving Canadians continue to support charitable causes during the holiday season:
Rewards & Spending Strategies Canadians are leveraging credit card rewards to help manage holiday expenses, but satisfaction varies:
About Neo Financial Neo Financial is a technology company building a more rewarding financial experience through reimagined spending, savings, investing, and mortgages. Founded in 2019 by the co-founders of SkipTheDishes, Neo Financial has raised more than $650 million in funding and has been recognized as Canada’s top-growing company by The Globe and Mail and Deloitte. Neo is headquartered in Calgary, Winnipeg, and Toronto and is backed by top-tier investors across North America.
Through partnerships with leading financial institutions, Neo Financial provides customers with safe and secure ways to spend (Neo’s suite of credit cards), save (Neo Money™), invest (Neo Invest™), and get a mortgage (Neo Mortgage). Neo for Business powers financial solutions for Tim Hortons, Cathay, Hudson’s Bay, and over 10,000 other partners across the country. To learn more, visit neofinancial.com.
Survey Methodology These findings are from a survey conducted by Neo Financial from October 29th to October 31st, 2024, among a representative sample of 1,521 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.
