The Chartered Professional Accountants of Canada has found Canadians are worried inflation will make gift buying more difficult this holiday season, but it likely won't change how much money they'll spend.
The group conducted a 2022 Holiday Spending Study and found 67 per cent of respondents are concerned about higher costs.
However, spending on gifts is expected to hold steady, as people plan to spend about $589 on gifts, which is similar to the average CPA Canada has found in previous years from its annual study.
The survey found 64 per cent have not been saving money over the past year for their holiday gifts, but 54 per cent of those surveyed still plan to spend the same as they did last year. More than one in five say they are likely to take on debt to pay for holiday gifts.
"Households across the country have been feeling the pinch this year - what started off as rising prices grew worse as Canada's inflation rate peaked to its highest level in almost four-decades - but that doesn't mean taking on debt has to be inevitable," says Doretta Thompson, CPA Canada's financial literacy leader. "Even though holiday shopping is underway, it's never too late to learn how to manage merriment within your means and incorporate simple habits for long-term personal financial success."
The CPA said saving for the holidays should be part of people's annual budget, and people should maximize their dollar by seeking out the sales. Fifty-seven per cent said they intend to shop on Black Friday, Cyber Monday, Boxing Day or during other upcoming sales events.
Eleven per cent of Canadians plan to do their shopping at the last minute, which the CAP suggests is a bad idea because of impulse buying. People can also save money by giving the gift of time. Forthy-eight per cent are planning a non-traditional gift this year, such as a hand made item or a shared experience with a loved one.
