Amid Inflation, Supply Chain Challenges, and Ongoing Pandemic, Canadians Approaching Holiday Spending with Caution
Toronto, ON, November 17, 2021 – While four in ten (41%) Canadians say they are feeling more financially secure than they were a year ago, new research conducted by Ipsos on behalf of BMO Financial Group has found that many are approaching the holiday season and its associated spending with caution.
The decision to spend over the holidays or save for next year is an annual conundrum and one that is also reflected in this quarter’s data.
- 35% of Canadians are either spending less or have spent less on holiday gifts this year compared to years previous, while 9% are choosing to spend more this year.
- Men (11%) and residents of Montreal (14%) and Vancouver (15%) are more likely to be opening their pocketbooks this holiday season to spend more on their friends and family.
However, why is it that even though Canadians are feeling more financially secure, they aren’t spending more? The data show that Canadians may not connect being able to make large purchases with a sense of financial progress. In fact, the top three indicators of financial progress for Canadians are having an emergency fund (44%), saving for retirement (37%) and paying down debt (36%) with few indicating that the ability to make large purchases (or even a home) (21%) is a sign of financial progress.
How much Canadians spend over the holidays may also be influenced by whether they have saved up over the year to splurge on gifts. Half (48%) say they save money each year specifically for the holidays; of which, 35% say they’ve been able to save more this year than in years previous. Perhaps foreshadowing their future purchasing power this holiday season, Gen Zers are more likely than any other generation to say they save for the holidays (63%) and report that they have been saving more than in past years (47%).
Setting holiday spending aside, what are Canadians planning for their financials in the new year? Half (49%) say they have set (22%) or plan to set (27%) financial resolutions for 2022, with the latter higher among women (31% vs. 23% men). Among Canadians who made financials resolutions, the most common goals are to save more than in previous years (41%) and to stick to a budget (40%).
About the Study
These are some of the findings of an Ipsos poll conducted between October 8-29, 2021, on behalf of BMO Financial Group. For this survey, a sample of 3,401 Canadians aged 18+ was interviewed online (comprised of 2,501 nationally representative interviews plus additional interviews in Montreal, Toronto and Vancouver). Quotas and weighting were employed to ensure that the sample’s composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 2.5 percentage points, 19 times out of 20, had all Canadians aged 18+ been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Sean Simpson
Senior Vice President, Ipsos Public Affairs
+1 416 324 2002
[email protected]
Haley Jones
Account Manager, Ipsos Public Affairs
About Ipsos
Ipsos is the world’s third largest market research company, present in 90 markets and employing more than 18,000 people.
Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.
Founded in France in 1975, Ipsos is listed on the Euronext Paris since July 1st, 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD).
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