Holiday spending expected to decrease over 2022

Nov 22, 2023 | 6:00 AM

In the battle between Black Friday and Giving Tuesday, it looks like Canadians will pick charity over shopping this year.

The catch 22 is that many businesses, especially independent local shops, are also big supporters of local non-profit organizations.

According to the BMO Real Financial Progress Index, 78 per cent of Canadians plan to cut back on holiday spending, but one-third of Canadians still plan to donate to charitable causes.

The study found that:

78 percent of Canadians plan on purchasing fewer gifts this holiday season.
26 per cent plan on reducing the number of people they gift to.
37 per cent are not confident they will be able to afford every item on their holiday shopping list.
51 per cent say thinking of holiday spending causes financial anxiety.
40 per cent are planning on buying less expensive gifts.
On average, Canadians believe it will take three months to pay back their holiday bills.
24 per cent are not confident they will be able to pay off their post-holiday bills on time.

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“With people deciding to cut back on spending and donations during the holiday season, it’s more important than ever to be strategic with those dollars and support local businesses and non-profits,” Greater Vernon Chamber of Commerce General Manager Dan Proulx said.

“These organizations are made up of our friends and neighbours who provide local employment, pay local taxes, support community initiatives, and enhance the vibrancy and uniqueness that makes Vernon home. The season of giving can make a big difference for local businesses and charities and if they’re not supported the impact will be felt throughout the community,” Proulx said.

With the cost-of-living crisis and challenging economic environment at the forefront, Canadians are planning on dedicating funds to charitable giving this holiday season.

According to Charity Village, 90 per cent of charitable giving happens in the last two months of the year.

33 per cent of Canadians say their charitable giving will remain the same as previous years.
Over 35 per cent plan on contributing money and/or donating stocks, securities and/or mutual funds to charitable causes.
16 per cent plan to volunteer their time this holiday season.

“You can spread your dollars further by supporting local as the funds are recirculated in the community. Once those dollars are spent elsewhere, they’re gone,” Proulx added.

To learn more about supporting local business, click here.

For information on charitable giving in the community, click here.

by Kevin Rothwell

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