{"id":294428,"date":"2025-12-02T07:03:25","date_gmt":"2025-12-02T07:03:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/294428\/"},"modified":"2025-12-02T07:03:25","modified_gmt":"2025-12-02T07:03:25","slug":"feeling-the-affordability-pinch-heres-how-to-keep-holiday-spending-under-control","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/294428\/","title":{"rendered":"Feeling the affordability pinch? Here\u2019s how to keep holiday spending under control"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

A BMO survey of 2,500 Canadians found that half experience financial stress related to holiday spending.Angelina Katsanis\/The Associated Press<\/p>\n

With the holiday season upon us, it\u2019s easy to feel the pressure to spend. And this year, Canadians are feeling the extra challenges brought by tariffs<\/a> and the rising cost of living. <\/p>\n

A recent survey for the BMO Real Financial Progress Index, conducted from Sept. 3 to Oct. 11, found that 61 per cent of Canadians have adjusted their holiday spending plans in anticipation of rising costs because of tariffs. Even so, Canadians still expect to spend an average of $2,310 this season, the survey found.<\/p>\n

But personal-finance experts say you can enjoy the season without a January spending hangover by planning ahead, smart budgeting and being intentional about where your money goes.<\/p>\n

Kevin Williams, a Sun Life financial planner, says looking back at last year\u2019s bills can help Canadians break the cycle of holiday overspending.<\/p>\n

Mr. Williams recommends building a holiday budget of 1.5 per cent to 2.5 per cent of your annual income. For instance, someone who earns $50,000 would have a budget of $750 to $1,250.<\/p>\n

Holiday gift guide 2025: 60 of the year\u2019s best finds for everyone on your list<\/a><\/p>\n

For Melissa Leong, author of Happy Go Money, an early spending plan is a helpful tool. Before the holiday rush, Ms. Leong outlines her five biggest spending categories \u2013 gifts, hosting, food, travel and decor \u2013 and estimates how much she\u2019ll spend on each.<\/p>\n

\u201cStudies show that when you predecide, you spend less because you\u2019re not negotiating with yourself in the moment,\u201d Ms. Leong says.<\/p>\n

A written plan, she adds, shifts your thinking into a more rational mindset and reduces the urge to overspend. <\/p>\n

A separate survey by CPA Canada of 1,594 Canadians, conducted from Oct. 17 to 19, found that 68 per cent rank gift-giving as their top holiday priority. Average gift budgets have risen to $661, a 10-per-cent increase from last year, led by Gen Z and younger millennials.<\/p>\n

\u201cYounger Canadians are tending to spend more this season, and they may not be in a financial situation where they could afford that additional spend,\u201d says Li Zhang, financial literacy leader at CPA Canada. \u201cForty per cent of 18- to 34-year-olds are increasing their budgets, and 58 per cent are relying on debt or credit products to fund their holiday purchases.\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Sun Life financial planner Kevin Williams recommends that Canadians build a holiday budget of 1.5 per cent to 2.5 per cent of their annual income.Ethan Cairns\/The Canadian Press<\/p>\n

BMO\u2019s survey of 2,500 Canadians found that half experience financial stress tied to holiday spending. More than a third say they feel pressured to keep up with others\u2019 spending, even if they cannot afford it; 36 per cent draw from long-term savings to afford holiday costs; 35 per cent take on extra work; and on average, Canadians say it\u2019ll take more than two months to pay off holiday bills. <\/p>\n

Beyond setting a budget and adjusting your spending habits, Ms. Leong says there are additional ways to make every dollar count. She recommends maximizing cashback and loyalty rewards, researching coupon codes, tracking welcome bonuses, and asking in-store about current promotions.<\/p>\n

Unused gift cards and rewards points can also help reduce holiday spending, Mr. Williams says. He suggests taking inventory and paying attention to early grocery-store deals, such as discounted turkeys, stuffing or other cooking supplies. <\/p>\n

\u201cWe all get that dopamine from a good deal, so approach Black Friday and Cyber Monday with a strict list and a plan,\u201d Ms. Leong says. \u201cIt\u2019s a great opportunity to get gifts and even gift cards for less, but don\u2019t get caught up in the frenzy.\u201d<\/p>\n

Opinion: Four steps to avoid a financial hangover in January<\/a><\/p>\n

She suggests writing down financial goals for the new year \u2013 from savings and investments to RRSP contributions \u2013 before holiday shopping, as it may inspire better choices.<\/p>\n

For those already entering the season with debt, Mr. Williams recommends committing to a cash-only holiday. \u201cTake your cash out, put it in an envelope for your budget,\u201d he says. \u201cWhen the cash is gone, the holiday spending is done.\u201d<\/p>\n

Ms. Leong says another way to save money is focusing on homemade or experience-based gifts and spending quality time with loved ones. Traditions don\u2019t have to become financial obligations \u2013 a large holiday dinner can become a potluck, and a full family gift list can turn into a Secret Santa exchange. <\/p>\n

\u201cMoney, when you get older, cannot buy you health. It cannot buy you any extra time on this Earth. But you\u2019ll always have your memories,\u201d Mr. Williams says. \u201cYou can\u2019t put a price on memories \u2013 so make this Christmas a memorable one by spending time, which is priceless.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: A BMO survey of 2,500 Canadians found that half experience financial stress related…\n","protected":false},"author":2,"featured_media":294429,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,94538,56,54,55,25875],"class_list":{"0":"post-294428","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-personalfinance","12":"tag-pf-ca","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom","16":"tag-yessnap"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/294428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=294428"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/294428\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/294429"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=294428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=294428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=294428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}