Credit cards are likely to take most of the strain of holiday spending with 55% of respondents planning to add to balances, while 5% plan to use buy-now-pay-later tools. Paying off that debt is expected to take three months on average, but 21% are not sure they will pay their holiday bills on time and 11% are concerned when or if they will be able to clear these debts.
“While affordability and cost of living concerns will be top of mind for many this holiday season, Canadians are still finding ways to celebrate the season by reevaluating their priorities and adapting their spending habits,” said Gayle Ramsay, Head, Everyday Banking Segment & Customer Growth, BMO. “Ahead of holiday parties, trips and gift exchanges, Canadians are encouraged to work with an expert to develop a personalized plan that reflects their long-term and immediate goals and take advantage of the convenient digital tools available to monitor their budgets to alleviate some of the financial stress the holidays can bring and help them make real financial progress.”
Charitable giving
Despite concerns about their own finances, many Canadians plan to help charities and other organizations this holiday season with 59% planning to give as much as in previous years and an average of $275.
Among the almost two thirds planning charitable giving, a third plan to contribute money and/or donate stocks, securities and/or mutual funds to charitable causes while 17% intend to volunteer their time.
“Recognizing many charities and organizations are under increased strain during these challenging times, it is encouraging to see Canadians are planning to be generous and are making incredible efforts to spread hope and progress in their communities this holiday season,” Lydia Potocnik, Head, Estate Planning & Philanthropic Advisory Services, BMO Private Wealth Canada. “For those considering gifting their time and/or resources, working with an expert can help develop a giving strategy that allows for more thoughtful support towards the causes aligned with their values and can help bring meaningful change in our communities – not only during the holidays, but throughout the year.”
