74% of Canadians Are Reducing Holiday Spending Due to Rising Living Costs: Spring Financial Survey

5 December 2024

Spring Financial’s annual holiday survey reveals Canadians’ holiday spending, saving, and stressor trends

VANCOUVER, BC –(COMMUNITYWIRE)–Today, Spring Financial, a fintech company simplifying the lending process for everyday Canadians, released its 2024 Holiday Survey.

According to the survey, over half of Canadians (56%) –in particular Gen Z (66%) and millennials (64%)– find the financial strain of buying gifts as the most stressful part of the holiday season. Meanwhile, 38% of Canadians are feeling more financial stress about buying gifts this year than last year, a significant increase from the 13% that felt this way in 2023.

“Canadians are feeling the financial strain of holiday spending this year more than ever,” shared Tyler Thielmann, President and CEO of Spring Financial. “In these tough economic times, it’s encouraging to see so many people finding creative ways to avoid debt and consider alternative gift options. I hope this shift reassures those who are financially stretched that they’re not alone—and that it’s perfectly okay to explore meaningful, less costly ways to celebrate.”

Key survey findings include:

Millennials and Gen Z are Feeling the Squeeze

Nearly ¾ (74%) of Canadians—and 79% of both Gen Z and millennials—agree they are more likely to reduce their holiday spending budget this year due to rising living costs.
Nearly ⅓ (31%) of Canadians cannot afford to buy gifts this holiday season, this is highest among millennials (38%) and Gen Z (36%).
Half of Canadians (50%) are considering alternative gifts like homemade items or experiences, with younger generations leading the trend; Gen Z at 71% and millennials at 58%.
On the bright side: Nearly half (46%) of Gen Z expect to pay off holiday debt by the end of December.

Debt Payment Strategies are Strong

Though the Bank of Canada recently lowered interest rates, only 16% of Canadians feel it eased holiday financial stress.
While 75% of Canadians plan to pay off holiday debt by the end of January, 4% anticipate needing a full year.
On the bright side: Only 13% of Canadians plan on using buy now, pay later services to pay for holiday shopping, down from a whopping 44% last year.

Atlantic Canada has Highest Stress but Strongest Payment Plan

Atlantic Canada is feeling the pressure more than any other region, with 66% agreeing that the financial strain of buying gifts is the most stressful part of the holiday season this year.
62% of respondents in Atlantic Canada are planning alternatives to gift giving, higher than any other province.
Atlantic Canada is one of only four provinces (alongside BC, Alberta, and Ontario) where residents are considering a personal loan to fund holiday shopping.
On the bright side: 41% of Atlantic Canadians plan to pay off holiday debt by the end of December, the highest percentage of any province.

“We’re dedicated to helping Canadians break the debt cycle so it’s promising to see fewer people turning to high-risk options like buy-now-pay-later programs or overextending themselves with their holiday shopping,” added Thielmann. “By minimizing debt around the holidays, Canadians are setting themselves up for a healthy financial start to the new year.”

For more information about Spring Financial, visit springfinancial.ca.

These findings are from a survey conducted by KT Communications from November 15th to November 19th, 2024, among a representative sample of 1,515 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.

About Spring Financial

Spring Financial provides Canadians with quick access to financing. With a convenient process that can be done entirely on your device, Spring Financial is an easy and technologically advanced solution to securing a loan when the need arises. Customers are given the best-fit option from a suite of financial products that are designed and offered based on their profile. Spring Financial makes borrowing smarter, more transparent and more efficient. Since launching in 2014, Spring Financial has become one of the largest fintech companies in Canada with over two million applicants and 350,000 funded loans. To learn more about Spring Financial, visit springfinancial.ca.

Contacts

Media
Kelsi Tsatouhas
kelsi@ktcommunications.ca
604-786-2273