As the holidays approach, many Ontarians are planning to cut back on spending, citing rising costs and inflation as the main reasons.
The stark reality is laid out in a new TD poll released Monday: 34 per cent of Ontarians said they will cut back on their holiday spending.
Of those planning to cut spending, 65 percent say the higher cost of living remains a key factor, while 51 percent blame a lack of disposable income.
“I think a lot of it is even the pressure of trying to achieve more than the previous year and potentially catch up during the pandemic,” said Anthony Celebre, TD branch manager in Barrie, Ont. “With the return to normality, we now expect that we will have to make this holiday special and therefore surpass the previous year.”
Celebre said that while some expect the holiday to be special, many are unsure what they can and cannot afford given other expenses.
The survey found that those cutting costs have different priorities in terms of where they will spend their money.
For example, 50 percent of those who spend less say they plan to cut back on social spending such as eating out or going to holiday parties, while about 47 percent say they are cutting back on gifts for family and 39 percent say they are cutting back on gifts for friends.
Get the latest national news
To stay on top of news affecting Canada and the world, sign up for breaking news alerts delivered directly to you as they happen.
“When we know what the cost of something will be, like a gift to a loved one, like a family member or friend, I think it's easier to swallow the pill and eat the cost,” Celebre said. “But sometimes there are some variables. So going to a social event, especially if it's outside your home and maybe in an event space, there are some variables in how much it's going to cost.”
While Ontarians say they are trying to cut costs, an overwhelming majority – 83 per cent – said holiday “temptations” such as sales or convenience shopping could devastate their budgets.
Retail analyst Bruce Winder isn't surprised.
“There can be a gap between what clients say they are going to do and what they end up doing,” he said.
He pointed to a recent report from Salesforce that said online sales in Canada over the Black Friday weekend were up nine per cent from a year earlier. It also revealed that Black Friday online sales were up seven percent compared to 2024.
Winder told Global News that it's not just flash sales that can undermine budgets, but also people's relationships with their families and friends.
“Secondly, there's the emotional reaction where they say, 'Okay, you know, I know I should only spend $30 on my brother, but I really love my brother, and hey, what's another $10,'” Winder said. “And then they do it to everyone in the family. Next thing you know, they've blown their budget to pieces.”
While some Ontarians are cutting back on their holiday shopping, the survey found 41 per cent of them are putting their money into savings rather than spending.
Winder said that with recent announcements of upcoming job cuts, such as at Algoma Steel, it was a smart move to put the money into savings.
“So maybe Canadians or Ontarians are looking at this and saying, 'You know what, there's a lot of bad stuff going on in the province of Ontario in terms of employment, I better save some money because I might lose my job in the new year and I'll still have to pay rent and I'll still have to buy food.'
Celebre added that if people are looking to save for holiday shopping, it may be time to start now and for next year.
“This could be a savings goal that they can achieve by planning ahead and saving money throughout the year,” he said.
—with files from The Canadian Press
© 2025 Global News, a division of Corus Entertainment Inc.
