CashNews.co
TORONTO and MONTREAL, Nov. 21, 2024 (GLOBE NEWSWIRE) — As Black Friday kicks off the holiday shopping season, a recent survey from CPA Canada and BDO Debt Solutions reveals that 94 per cent of Canadians anticipate financial stress over their holiday spending.
With many Canadians planning to scale back their holiday budgets, the pressure to secure Black Friday deals comes with a growing reliance on credit cards. In fact, 56 per cent of respondents say they’ll rely on credit to fund their purchases, a move that experts warn could lead to significant post-holiday debt.
“Using credit cards for holiday shopping may ease the immediate financial burden, but it can create a much bigger problem down the line if balances aren’t paid off quickly,” says Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions.
Although many Canadians plan to stick to the same budget as last year, 18 per cent admit they’re likely to overspend.
“The notion that this should be a time of joy and generosity is sharply contrasted by the reality that many will start the new year in debt,” says Li Zhang, financial literacy leader at CPA Canada. “Given consumers are grappling with a consistently rising cost of living, it’s not surprising that the festive season has become a major source of anxiety.”
Other stand-out findings:
- Generational stress: Millennials and Gen Z report the highest levels of financial anxiety.
- ‘Tis the season to be thrifty: Canadians plan to spend an average of $595 on gifts this year, down from $645 in 2023.
- Donations decline: Only 24 per cent of respondents plan to donate to charity this season, a notable drop from last year’s 30 per cent.
- Staying home for the holidays: While 57 per cent of respondents are skipping holiday travel, those who are travelling expect to spend 33 per cent more than last year.
For the complete survey results and methodology, or to schedule an interview, please contact [email protected].
