Canadians Gear Up for a Thoughtful Holiday Shopping Season: Trends, Spending Plans, and Budgeting Tips for 2024

As the festive spirit begins to awaken among Canadians, the 2024 holiday shopping season is shaping up to be both exciting and thoughtfully strategic. Data from the Retail Council of Canada’s (RCC) latest Holiday Shopping Survey indicates a strong commitment from shoppers to increase their spending, with the average Canadian planning to allocate approximately $972 for gifts this year, reflecting an 8% rise from previous spending forecasts. This optimistic outlook, tempered by the realities of inflation and rising living costs, has led many shoppers to reassess their budgets and purchasing strategies. In this article, we will explore the key spending trends for the upcoming holiday season and provide effective strategies for mindful budgeting and thoughtful gifting, ensuring that Canadian consumers can enjoy a financially savvy festive season.

Key Takeaways

• Canadians plan to increase their holiday spending by 8% in 2024, averaging $972 per person.
• Budget-conscious shopping habits are shifting priorities toward essentials, with a focus on fewer, more thoughtful gifts.
• Gift cards are increasingly popular, with 42% of Canadians including them in their holiday budgets, reflecting a significant change since 202

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Key Spending Trends for the 2024 Holiday Season

### Key Spending Trends for the 2024 Holiday Season
As the 2024 holiday shopping season approaches, Canadians are showing a renewed enthusiasm for spending, according to the Retail Council of Canada’s annual Holiday Shopping Survey. Approximately 2,500 Canadians participated, revealing that they plan to spend an average of $972 on holiday gifts this year, representing an 8% increase from last year’s expected spending of just under $900. However, amid rising inflation and increased living costs, a significant 90% of respondents reported a heightened awareness of their budgets, indicating a shift towards more mindful spending.

Responses from the survey highlight a recalibration in purchasing priorities: clothing, food, and home essentials are at the forefront of consumers’ minds, while interest in toys and electronics has diminished. Notably, gift cards have surged in popularity, with 42% of survey participants including them in their budgets, a dramatic increase from just 16% in
2021. Furthermore, the influence of inflation is driving 71% of Canadians to adjust their shopping habits, generally opting for fewer, yet more meaningful gifts. To capitalize on savings, nearly half of all shoppers (48%) are looking forward to Black Friday deals, making this day a pivotal moment in their shopping calendars, with 38% planning to delay purchases until these promotional periods begin—up from 34% in
2023.

Geographically, spending habits show variance across provinces, with Ontarians projected to spend the most at an average of $1,158, while Quebecers anticipate a more modest budget of $770. Interestingly, those in Atlantic Canada reported a significant 19% reduction in their holiday spending plans compared to last year. Regardless of these disparities, the overall sentiment leans towards maintaining or even increasing budgets for the holidays.

Moreover, the preferences between shopping in-store versus online continue to evolve. The survey indicates that 62% of Canadians prefer the in-person shopping experience, while 38% are swayed towards online purchases for their convenience—an echo of the retail behaviour shift seen during the COVID-19 pandemic. In summary, as Canadians prepare for the holidays, they are poised to spend more while adopting a more targeted approach to gift-giving, focusing on essentials and thoughtful budgeting.

Strategies for Mindful Budgeting and Thoughtful Gifting

### Strategies for Mindful Budgeting and Thoughtful Gifting
With a surge in holiday spending anticipated for 2024, Canadians are not only focusing on the excitement of gift-giving but also on the importance of financial mindfulness. One effective strategy for mindful budgeting is setting a clear spending limit for each category of gifts. By breaking down the total holiday budget into manageable sections—such as clothing, food, and home essentials—shoppers can avoid overspending and ensure they stay within their means. Additionally, prioritizing thoughtful gifting can significantly enhance the influence of each present. Instead of buying numerous small items, consumers can opt to give fewer, higher-quality gifts that truly resonate with their recipients. This approach is not only financially savvy, but it also promotes a more meaningful exchange during the holidays. Furthermore, tracking expenditures in real-time using budgeting apps or spreadsheets can assist Canadians in maintaining their budgets effortlessly. Lastly, considering alternatives like homemade gifts or experiential presents, such as gifting a day out together, can also allow for a more personal touch while saving money. These strategies reflect a conscious shift in shopping behaviours that align with a greater awareness of financial health and the impact of continued economic pressures.