With rising costs of mortgage and rent payments, high levels of household debt, and continued economic uncertainty, most Canadians will be taking care not to max out their credit cards this holiday season according to a new survey.
The poll from the Chartered Professional Accountants of Canada (CPA Canada) reveals that average spending on holiday gifts will be $643 and 84% of respondents will spend less than $1,000.
Almost two-thirds will spend less than $200 on travel and $400 on entertaining (including those who will spend nothing at all on these).
On budgeting for holiday spending, Canadians are split with 52% indicating they will plan out their spending and 46% saying they will not, with 2% unsure.
"It's encouraging that most of the survey participants plan to keep their spending in check this holiday season," says Doretta Thompson, director, corporate citizenship, CPA Canada. "Many Canadians could make it easier on themselves by planning ahead and saving throughout the year for holidays. Thinking ahead financially can sure help make the season one of good cheer."
Most Canadians (67%) do not believe they will overspend this year, but if they do it will be for their immediate family, with 69% indicating they would be likely to go over budget for their children or significant others.