Gen Z and younger millennials are outspending older generations this holiday season and they’re leaning on credit cards to do so, according to new survey findings from CPA Canada.
As the holiday spending season fast approaches, the national organization said the survey suggests that 40% of younger Canadians (ages 18-34) plan to spend more than last year and 58% expect to rely on credit to fund their purchases. More than half (56%) also say they’re feeling more stressed about holiday spending than they did last year.
“This suggests that many younger Canadians are feeling the pressure to spend, even if that means stretching their budgets a little too far,” said Li Zhang, CPA Canada’s financial literacy leader. “But relying on credit in the short term can quickly turn that joy into stress in the new year without a repayment plan.”
The CPA said older Canadians, by contrast, are taking a different approach. Among those aged 55 and up, about two-thirds (68%) plan to maintain last year’s spending levels, and nearly three-quarters (70%) say they’ll rely on savings and regular income rather than credit to cover their holiday costs.
“Across all age groups, gift giving remains the top priority, with 68% of Canadians placing it at the top of their holiday spending lists. Nationally, gift budgets have risen modestly to an average of $661, up 10% from last year, with the biggest increases among Gen Z and younger millennials who are prioritizing gift-giving and entertaining over donations and travel,” it said.
Overall, the CPA said more Canadians (66%) plan to use savings and regular income to fund spending than credit (49%), representing a slight uptick from last year when Canadians used credit cards and savings at similar levels. This shift is driven by 70% of those aged 55 and older using savings and regular income to fund their holiday purchases.
“This is an encouraging result that suggests a cautious shift toward more mindful budgeting,” said Zhang. “Reducing reliance on credit could make a real difference in how much post-holiday debt Canadians carry into the new year.”
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