With Christmas only nine days away, Canadians are tightening their belts on holiday shopping this season.
A new CIBC poll of 1,516 Canadians taken between December 2 to December 4 found that the average amount Canadians spend on holiday shopping fell to $597, compared to $652 in 2015.
Fifty-one per cent also said they expect to go over budget in the process.
“While most Canadians use their credit card responsibly, it’s very easy to get swept up by the holiday spirit and carried away with spending,” said CIBC vice-president of imperial services, David Nicholson. “The best way to stay cheerful is to spend within your means.”
According to the poll, British Columbians will be spending the second-lowest amount in the country on the holidays, fronting an average of $529 this year, down from $557 last year. Albertans will spend about six percent more than last year, averaging about $688.
All other provinces are seeing amounts decreasing, most drastically in Quebec where shoppers are trimming their budgets by 12 per cent.
Millennials are making the most drastic cuts to holiday spending, slashing budgets to about $400, a 14 per cent drop over last year. Millennials are also more likely to buy on credit, with one in five saying that they feel “a little guilty” as the credit card bills start to arrive in the mailbox.
“If we’re not careful, these unplanned expenses can derail even the most mindful budgeters and lead to tighter finances, stress and even regret when the bills come due,” said Nicholson.
CIBC suggests consumers take a few smart steps this December to avoid breaking the bank, including being realistic with family members about holiday expectations, tracking expenses, staying in to celebrate rather than racking up expensive restaurant bills and speaking to financial advisers to help get spending under control.