A new nationwide survey has found that the majority of Canadians are preparing for a more modest Christmas this year. The results highlight the ongoing pressure of rising living costs on households across the country.
According to the Harris & Partners 2025 Christmas Spending Report, based on responses from 1,820 Canadians, the findings show significant shifts in budgeting and spending habits:
- 71.5% say they will cut back on Christmas spending this year
- 62% do not feel financially prepared for Christmas
- 53.1% feel anxious about affording the holidays
- 83.7% believe Christmas has become more expensive than last year
- 85% say they will be setting a strict Christmas spending budget
“These figures show a meaningful change in how Canadians are approaching the holiday season. Many families are still working through the effects of high living costs, and for a large number of people, there is simply less financial flexibility available. Christmas remains an important time for connection and celebration, but this year it will look different for many households,” said Joshua Harris, CEO of Harris & Partners.
Financial strain continues to shape spending behaviour
The survey found that half of respondents (50.5%) have not started saving for Christmas 2025. One-third (33.8%) say they do not plan to save at all. Among those who do save, 36.6% typically begin setting money aside in October or November, rather than earlier in the year.
Harris said that this reflects how close to the edge many budgets currently are.
“Canadians are not avoiding saving because they are unwilling to prepare. Many simply do not have the room to set funds aside until they are right up against when the costs appear. Month-to-month budgeting has become the norm.”
Most are avoiding borrowing, but this may signal credit limitations
The survey also shows that 86.1% of respondents do not expect to borrow or use credit to pay for Christmas this year.
“Some households are choosing to avoid debt, which is positive. However, for others, the option to rely on credit may no longer be available. This leads to reduced spending and, in many cases, increased stress around meeting expectations during the holidays,” Harris explained.
Emotional impact is rising
More than half of respondents say they feel anxious about costs this holiday season. Harris notes that this emotional strain should not be overlooked, said the report.
“When people feel pressure to make the holidays meaningful, yet worry about how to afford them, the stress is significant. The emotional impact of financial strain is real, and this time of year can intensify it.”
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