Black Friday blitz, Boxing Day bonanza, tempting bargains and deep discounts, shops will need to try every way to wheedle money out of Canadians this festive season.
A recent survey by TD Canada Trust says the majority of Canadians plan to spend very little and only what they need (37%) or that they would budget and manage their spending to ensure they don’t overspend (35%).
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“The holidays can be busy, so to reduce financial stress and avoid spending more than you should, it’s important to make a shopping plan, create a budget and monitor your spending,” says Raymond Chun, senior vice president, TD Canada Trust. “Finding ways to enjoy the holidays without breaking your budget will not only help make the season more cheerful, but will also help you welcome the new year with more money in your pocket.”
The research also found that while the majority of Canadians (60%) say they plan to create a holiday shopping budget, more than a third (37%) think their intentions might slide, saying it is likely they will spend more than they planned.
On average, Canadians plan to spend $842 on gifts and other holiday expenses such as food, decorations and entertainment during the holiday season, only 21% plan to spend more than $1,000.
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Some of the ways Canadians plan to save include taking advantage of store sales, discounts, coupons and exclusive deals (78%), conducting online research for the best deals (62%). Thirty-nine per cent also say they are likely to redeem rewards points while 16% say they are likely to re-gift to reduce holiday expenses.
Some handy tips to help you stay on track this holiday season:
- Plan: Devise a holiday shopping plan. Make a list of what you want to purchase in each store to avoid impulse spending plus research the best prices and sales online. There are now more than 21,500 e-commerce merchants in Canada.
- Budget: Determine what you can realistically afford to spend and create a budget. To get a better idea of what you might spend this year, look online at last season’s bank or credit card statements. Remember to add categories for other holiday expenses aside from gifts, like eating out, decor, and travel.
- Monitor Spending: Track your holiday spending, it’s one of the easiest ways to avoid overspending. Using one debit or credit card for all your holiday purchases can be a convenient way to stay on top of what you’re spending. Remember, while a credit card can help you track your spending and earn rewards, only use it if you can afford to pay off the balance in full and on time. Redeeming rewards points for gifts to get your budget back on track.