Spring Financial, a fintech company simplifying the lending process for everyday Canadians, recently released its 2024 Holiday Survey, indicating more people are feeling the financial strain these days.
According to the survey, over half of Canadians (56%) – in particular Gen Z (66%) and millennials (64%) – find the financial strain of buying gifts as the most stressful part of the holiday season. Meanwhile, 38% of Canadians are feeling more financial stress about buying gifts this year than last year, a significant increase from the 13% that felt this way in 2023.
“Canadians are feeling the financial strain of holiday spending this year more than ever,” shared Tyler Thielmann, President and CEO of Spring Financial. “In these tough economic times, it’s encouraging to see so many people finding creative ways to avoid debt and consider alternative gift options. I hope this shift reassures those who are financially stretched that they’re not alone—and that it’s perfectly okay to explore meaningful, less costly ways to celebrate.”
Key survey findings include:
Millennials and Gen Z are Feeling the Squeeze
- 74% of Canadians—and 79% of both Gen Z and millennials—agree they are more likely to reduce their holiday spending budget this year due to rising living costs.
- 31% of Canadians cannot afford to buy gifts this holiday season, this is highest among millennials (38%) and Gen Z (36%).
- 50% are considering alternative gifts like homemade items or experiences, with younger generations leading the trend; Gen Z at 71% and millennials at 58%.
- 46% of Gen Z expect to pay off holiday debt by the end of December.
Debt Payment Strategies are Strong
- Though the Bank of Canada recently lowered interest rates, only 16% of Canadians feel it eased holiday financial stress.
- While 75% of Canadians plan to pay off holiday debt by the end of January, 4% anticipate needing a full year.
- Only 13% of Canadians plan on using buy now, pay later services to pay for holiday shopping, down from a whopping 44% last year.
Atlantic Canada has Highest Stress but Strongest Payment Plan
- Atlantic Canada is feeling the pressure more than any other region, with 66% agreeing that the financial strain of buying gifts is the most stressful part of the holiday season this year.
- 62% of respondents in Atlantic Canada are planning alternatives to gift giving, higher than any other province.
- Atlantic Canada is one of only four provinces (alongside BC, Alberta, and Ontario) where residents are considering a personal loan to fund holiday shopping.
- 41% of Atlantic Canadians plan to pay off holiday debt by the end of December, the highest percentage of any province.
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