As Canadians look ahead to 2026, many hope to rein in spending but new data shows just how tricky it can be. Despite intentions to spend less, post-season findings from NerdWallet Canada, based on a survey conducted by The Harris Poll, reveal that rising costs and holiday pressures likely pushed shoppers beyond their budgets.
The survey found:
- Intention versus reality: 2025 holiday shoppers’ actual spend on gifts, $828 on average, is higher than what those who planned to buy gifts last holiday season anticipated they’d spend.
- When surveyed in October 2025, Canadians who planned to purchase gifts expected to spend $708, on average.
- The post-holiday average suggests actual spending exceeded earlier projections by $120.
- Overspending wasn’t because of poor planning: Only 7% of 2025 holiday shoppers blame their lack of planning for overspending/overbuying on gifts.
- Inflation was still The Grinch of the season: 43% of 2025 holiday shoppers say higher cost of living/inflation impacted the amount they spent on gifts this past holiday season.
- Canadian holiday shoppers are getting savvier: 33% of 2025 holiday shoppers shopped only during sales, deals and promotions and 23% used loyalty points or cashback to pay for holiday gifts.
- Elbows are still up: 20% of 2025 holiday shoppers bought more ”Made in Canada” gifts, which were more expensive than foreign-made gifts.
- Most Canadians were still in the spirit: 89% of Canadians purchased gifts for friends and loved ones this past holiday season.
NerdWallet Canada personal finance expert Shannon Terrell said even the best-laid, most well-intentioned budgets aren’t impervious to the stressors of the season.
“Holiday gift giving is an overwhelming gauntlet of inflation creep, scarcity marketing, BOGO traps and spend-to-save thresholds. Throw in some emotionally-loaded gifting anxiety for a good measure and you’re looking at the perfect financial storm. Intentions alone aren’t always enough.
“I think higher prices did a lot of heavy lifting this holiday season. Was poor planning or frivolous spending a factor? For some folks, sure. But many Canadians used thrifty gifting strategies to try and get ahead this season, like crafting their own gifts, shopping only during sales and using loyalty points to cover the cost of gift purchases. Yet, even when Canadians stuck to their lists, shopped the sales and cashed in
their points, they still came in over budget. That speaks to a fundamentally different financial landscape than the one Canadians were budgeting for based on previous years’ experience.
Terrell said we need to stop framing holiday overspending as a moral failing and start acknowledging the systemic pressures working against even the most diligent budgeters.
“Both in person and online retail environments actively encourage consumers to spend more, often via an artificial sense of urgency. It can
feel deeply compelling, even financially irresponsible not to take advantage of whatever ‘deal’ is being waved before your eyes. A budget is only half the battle. Implementing a 24-hour cooling off period, where you sit on a purchase overnight, can help dissipate the sense of urgency. This way, you can make a more clear-eyed decision about whether to make the purchase.”
More Canadians are shopping sales and using loyalty points and cashback programs. Are these tools genuinely helping people control costs, or do they sometimes encourage higher spending?
“It can be both, which is what makes these programs so appealing — and dangerous. Swiping your credit card to rack up rewards points or cash back is fine, so long as you have an actionable plan for paying back what you owe before it starts to accrue interest. Interest charges actively devalue your rewards, so unless you’re staying on top of your balance, you may be paying more to grow your point balance than you realize,” explained Terrell.
She said Canadians may not be able to control the ongoing tariff dispute, but they do get to choose how and where they spend their hard-earned dollars.
“In the past year, we’ve seen people voting with their wallets in a show of community support and national economic resilience. I think Canadian retailers have an interesting opportunity here. Yes, there appears to be a growing appetite for Canadian-made goods. But if a home-grown or locally-made product comes at a consistently higher cost, does it become a luxury only higher-income households can afford? The interest is there. The question is whether the industry can meet it without forcing Canadians to choose between purchasing products that align with their values or safeguarding their household budgets.”
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