Holiday Spending

Toronto, ONTARIO - According to a new study conducted by Ipsos-Reid on behalf of Moneris Solutions, Canadians who give gifts (98%) expect to spend a mean average of $761.15 in total on gifts for others this holiday season. Three-quarters (73%) of those say this is the same amount as last year. In addition, 95% of Canadians plan to spend money on other areas this holiday season such as clothing, travel, decorations, beauty services, food and drink, or entertainment, and they expect to spend a mean average of $724.08 on such items.

Asked to describe their spending habits during the December holiday season," six in ten (58%) Canadians said "they don't set a budget and spend as they go," one-quarter (25%) "sets a budget and sticks to it," while 16% "set a budget but often exceed it." Thinking of their holiday season shopping style, the top three responses were "last-minute shopper" (38%), "early starter" (32%), and "someone who shops year round" (13%). The most difficult people to buy for are spouse/partner (25%), dad (15%), child/children (15%), and mom (12%). Less common responses can be found in the pages that follow.

The most popular method of payment for holiday shopping will likely be the debit card, with 43% who say they will use this method most often while shopping this season. The second most popular method will be the credit card (30%), followed by cash (26%). The most common reason for using a credit or debit card as their primary payment method this holiday season is "it's convenient" (42% debit card, 37% credit card), while the most common reason for using cash is "it helps keep track of spending" (57%).

These are the findings of an Ipsos-Reid poll conducted on behalf of Moneris Solutions Corporation between October 21st and October 23rd, 2003 and October 28th and October 30th, 2003. The telephone survey is based on a randomly selected sample of 2,111 Canadians. With a sample of this size, the results are considered accurate to within 177 2.1 percentage points, 19 times out of 20, of what they would have been had the entire population of Canadians been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Canadians who give gifts (98%) expect to spend a mean average of $761.15 in total on gifts for others this holiday season.

• Residents of Alberta ($954.61) expect to spend the most on gifts for others this holiday season followed by residents of Atlantic Canada ($910.46), Ontario ($859.14), Saskatchewan/Manitoba ($794.71), and British Columbia ($729.55). Residents of Quebec ($500.14) expect to spend significantly less.

• Canadian gift-givers 35-54 years of age ($825.10) expect to spend more than those who are younger ($741.40) or older ($687.73).

• Canadians with an annual household income of $60,000 or greater ($937.90) will likely be spending the most, followed by those with an annual income of $30,000-$59,999 ($739.66), and lastly those with an annual household income less than $30,000 ($419.26).

Three-quarters (73%) of these Canadian gift-givers say this is "the same" amount as last year, one in seven (14%) say it is "less," one in ten (12%) say it's "more," and the remaining 1% "don't know."

• There are no regional differences for this question.

• Canadian gift-givers 18-34 years of age (21%) are more likely than their elders (9%) to spend more this year, while those 35 and older (76%) are more likely than others (64%) to spend the same amount.

• Canadian gift-givers with an annual household income less than $30,000 are more likely than others to spend more (16% vs. 11%) or less (18% vs. 12%) than last year, while those with an annual household income of $30,000 or greater are more likely than others to spend the same amount (76% vs. 65%).

In addition to gift purchases, 95% of Canadians plan to spend money on other areas this holiday season such as clothing, travel, decorations, beauty services, food and drink, or entertainment, and they expect to spend a mean average of $724.08 on such items.

• Residents of Ontario ($800.71) expect to spend the most, followed by residents of British Columbia ($764.64), Alberta ($758.47), Quebec ($657.10), Atlantic Canada ($600.50), and Saskatchewan/Manitoba ($546.31).

• Men ($888.58) expect to spend more than women ($572.12) on such items.

• Canadians with an annual household income of $60,000 or greater ($993.43) will likely be spending the most, followed by those with an annual income of $30,000-$59,999 ($614.55), and lastly those with an annual household income less than $30,000 ($417.10).

Asked to describe their spending habits during the December holiday season, six in ten (58%) said "they don't set a budget and spend as they go," one-quarter (25%) "sets a budget and sticks to it," while 16% "set a budget but often exceed it." The remaining 1% "don't know."

• Residents of Alberta (69%) are most likely not to set a budget and spend as they go, followed by residents of Atlantic Canada (62%), Ontario (60%), British Columbia (60%), Saskatchewan/Manitoba (52%), and Quebec (51%).

• Canadians 35 years of age and older (28%) are more likely than those who are younger (19%) to set a budget and stick to it, while Canadians 18-34 years of age (19%) are more likely than their elders (14%) to set a budget but often exceed it.

• Men (65%) are more likely than women (52%) not to set a budget and spend as they go, while women are more likely than men to set a budget and stick to it (29% vs. 21%) or set a budget and exceed it (18% vs. 13%).

• Canadians with an annual household income less than $60,000 (27%) are more likely than others (21%) to set a budget and stick to it, while Canadians with an annual household income of $60,000 or greater (19%) are more likely than others (14%) to set a budget but often exceed it.

Asked which of a series of statements best describe their "holiday season shopping style," four in ten (38%) said "last-minute shopper," one-third (32%) said "early starter," and one in seven (13%) said "someone who shops year round." Other responses were as follows: "someone who makes their own gifts" (4%), "someone who does not give gifts" (2%), "someone who buys all their gifts on Boxing Day" (1%). Less than 1% said "someone who hires a personal shopper" best describes their holiday season shopping style, and 1% "don't know."

• Residents of Alberta (40%), Ontario (40%), and Quebec (38%) are more likely to describe themselves as a "last-minute shopper," while residents of Atlantic Canada (40%), Saskatchewan/Manitoba (39%), and British Columbia (35%) are more likely to say they are "early starters."

• Canadians 18-54 years of age (45%) are more likely than their elders (21%) to be "last-minute shoppers," while Canadians 55 years of age and older (16%) are more likely than others (11%) to "shop year-round."

• Men (47%) are more likely than women (29%) to be "last-minute shoppers," while women are more likely to be "early starters" (39% vs. 25%), "someone who shops year-round" (14% vs. 10%) or "someone who makes their own gifts" (5% vs. 3%).

• Canadians with an annual household income of $60,000 or greater (46%) are more likely than others (34%) to describe themselves as a "last-minute shopper," while Canadians with an annual household income of $59,999 or less (10%) are more likely than others (5%) to describe themselves as "someone who makes their own gifts."

According to Canadian gift-givers, the most difficult people to buy for are spouse/partner (25%), dad (15%), child/children (15%), and mom (12%). Less common responses were in-laws (8%), brother/sister (5%), friend (5%), boyfriend/girlfriend (4%), grandparent (4%), and other relative (4%). Another 4% say they "don't know."

• There are no regional differences for this question.

• Men are more likely than women to say spouse/partner (33% vs. 18%) or boyfriend/girlfriend (6% vs. 2%), while women are more likely to say dad (17% vs. 12%), child/children (17% vs. 12%), or in-laws (11% vs. 4%).

The most popular method of payment for holiday shopping will likely be the debit card, with 43% who say they will use this method most often while shopping this season. The second most popular method will be the credit card (30%) followed by cash (26%). Only 1% intends to use personal cheques the most often for purchases while shopping this holiday season.

• While the debit card is consistently the number one response across the regions, residents of British Columbia (34%), Alberta (34%), and Ontario (32%) are more likely to use credit cards and residents of Atlantic Canada (34%), Quebec (33%), and Saskatchewan/Manitoba (28%) are more likely to use cash.

• Canadians 18-34 (52%) are the most likely to use debit cards most often this holiday season, followed by Canadians 35-54 (44%) and Canadians 55 years of age and older (33%). Canadians 55 years of age and older (35%) are the most likely to use credit cards most often this holiday season, followed by Canadian 35-54 (33%), and Canadians 18-34 (20%). Canadians 55 and older (30%) are also most likely to use cash most often this holiday season, followed by Canadians 18-34 (28%), and Canadians 35-54 (22%).

• Women (47%) are more likely than men (38%) to use debit cards most often this holiday season, while men (32%) are more likely than women (28%) to use credit cards most often.

• Canadians with an annual household income of $30,000 or greater are more likely than others to use debit cards (46% vs. 39%) or credit cards (33% vs. 16%) most often this holiday season, while Canadians with an annual household income less than $30,000 are more likely than others to pay with cash (43% vs. 21%).

Four in ten (42%) of those who say they will use their debit card as their primary payment method this holiday season say it is because "it's convenient," three in ten (30%) will do so because "they don't like carrying cash during such busy shopping periods," two in ten (17%) say "it helps them keep track of their spending," one in ten (9%) say they will use their debit card as their primary payment method because "it's fast," 1% say it's because "they collect loyalty points," and 1% "don't know."

• Canadians 18-34 (47%) are more likely than those 55 and older (36%) to use their debit card as their primary payment method this holiday season because "it's convenient," while Canadians 55 and older (37%) are more likely than those 18-34 (25%) to use this method because "they don't like carrying cash during such busy shopping periods."

• Men (46%) are more likely than women (39%) to use their debit card as their primary payment method this holiday season because "it's convenient," while women (20%) are more likely than men (13%) to do so because "it helps them keep track of their spending."

Four in ten (37%) of those who say they will use their credit card as their primary payment method this holiday season say so because "it's convenient," three in ten (27%) will do so because "they collect loyalty points," two in ten (18%) say it's because "they don't like carrying cash during such busy shopping periods," one in ten (10%) say "it helps them keep track of their spending," 6% say they will use their credit card as their primary payment method because "it's fast," and 1% "don't know."

• Residents of British Columbia (50%), Alberta (45%), Ontario (35%), and Quebec (31%) are more likely to be using their credit card most often this holiday season because "it's convenient," while residents of Saskatchewan/Manitoba (40%) and Atlantic Canada (32%) are more likely to do so because "they collect loyalty points."

• Men (43%) are more likely than women (32%) to use their credit card as their primary payment method this holiday season because "it's convenient," while women (22%) are more likely than men (15%) to do so because "they don't like carrying cash during such busy shopping periods."

Six in ten (57%) of those who say they will use cash as their primary payment method this holiday season say so because "it helps them keep track of their spending," one-quarter (23%) will do so because "it's convenient," two in ten (18%) will do so because "it's fast" and 3% "don't know."

• There are no regional differences for this question.

• Canadians 35 years of age and older (62%) are more likely than others (45%) to use cash as their primary payment method this holiday season because "it helps them keep track of their spending," while Canadians 18-34 (25%) are more likely than their elders (14%) to do so because "it's fast."

• Women (62%) are more likely than men (52%) to use cash as their primary payment method this holiday season because "it helps them keep track of their spending."

Please open the attached PDF files to view the factum and detailed tables.

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For more information on this news release, please contact:
John Wright
Senior Vice-President
Ipsos-Reid Public Affairs
(416) 324-2900