Old-fashioned gifts, early planning and buying store brands: Here's how to save over the holidays
CTV
Following several months of high inflation rates, this holiday season may be especially stressful for Canadians looking to cut back on spending. Whether hosting friends and family members, or purchasing gifts for loved ones, here are some tips on how to make the most of the holiday season without breaking the bank.
Following several months of high inflation rates, this holiday season may be especially stressful for Canadians looking to cut back on spending.
A recent report published by Deloitte Canada shows holiday spending is expected to drop 17 per cent this year, to $1,520 per household. This is compared to $1,841 per household in 2021. The company’s 2022 holiday retail outlook also shows Canadians will likely spend about 10 per cent less on gifts and gift cards this year, for a total of $510.
“[This is] not a huge surprise when we think about what's happening around us,” Marty Weintraub, a partner and national retail consulting leader at Deloitte Canada, told CTVNews.ca. “We have prices rising quickly with interest rate challenges coming, [and] there's still some supply chain issues.”
According to Weintraub, the main reason behind this presumed pullback in spending is fear around Canada’s current economic climate. About 41 per cent of those surveyed by Deloitte Canada said their household finances have declined this year, while 48 per cent said they expect the economy to worsen in 2023. This comes as economists from the Royal Bank of Canada predict the country will enter a recession early next year.
“We have a looming economic downturn,” Weintraub said. “[Based on] public sentiment and the messaging we're looking at, it looks like it's going to happen … and that drives anxiety even higher.”
It can also create some tension for those eager to celebrate the holiday season after years of COVID-19 public health restrictions, said Anne Arbour, a financial educator with the Credit Counselling Society.
“There’s a desire to … get out there, to spend and to have a good time again,” she told CTVNews.ca. “But there’s also the reality of food and gas … costing considerably more.”
