34% of Ontarians cutting back this holiday season: TD survey

As the holidays near, many people in Ontario plan to cut back on spending, citing rising costs and inflation as key reasons.

The stark reality is laid out in a new TD survey released Monday, with 34 per cent of Ontarians saying they’ll be curbing their holiday spending.

Of those who plan to cut back, 65 per cent say the higher cost of living remains a key factor, while 51 per cent blame a lack of disposable income.

“I think a lot of it is even pressures of trying to achieve more than the previous year and potentially making up for lost time throughout the pandemic,” said Anthony Celebre, a branch manager at TD in Barrie, Ont. “With returning to normal, now we have the expectation that OK, we have to make this holiday extra special and therefore go above and beyond the previous year.”

Celebre said that while there’s an expectation among some wanting to ensure a special holiday, many are unsure what they can and cannot afford given other expenses.

The survey showed that those who are cutting back have differing priorities in terms of what they will spend their money on.

For example, 50 per cent of those spending less say they plan to cut back on social spending like eating out or going to a holiday party, while about 47 per cent say they are cutting back on gifts for family and 39 per cent say they’re cutting back on gifts for friends.

“When we know what the cost of something will be, such as a gift for a loved one like a family member or a friend, I think it’s an easier pill to swallow and eating the cost,” Celebre said. “But sometimes there’s some variables. So going to a social gathering, especially if it’s outside the home and maybe at an event space, there’s some variables on how much that would cost.”

Although Ontarians say they’re trying to reduce spending, a large majority – 83 per cent – said holiday “temptations” like flash sales or convenience buys could blow their budgets.

Retail analyst Bruce Winder isn’t surprised.

“There could be a disconnect between what customers say they’re gonna do and what they end up doing,” he said.

He pointed to a recent report from Salesforce which found online sales in Canada for the weekend following Black Friday were up nine per cent compared to a year ago. It also showed Black Friday online sales were up seven per cent compared to 2024.

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Winder told Global News it’s not necessarily just flash sales that could derail budgets, but the relationships people have with their families and friends.

“The other is the emotional response, when they say ‘OK you know I know I’m supposed to spend only $30 on my brother, but I really love my brother and hey, what’s an extra $10,’” Winder said. “And then they do that across all family members. Next thing you know they’ve blown their budget to pieces.”

While some Ontarians are trimming their holiday shopping, the survey showed of those cutting back, 41 per cent are putting their money into savings instead of spending.

Winder said given recent announcements of upcoming job losses, such as at Algoma Steel, it is a smart move to put money into savings.

“So maybe Canadians or Ontarians are looking at this and saying, ‘You know what, there’s a lot of bad things happening in the province of Ontario from an employment perspective, I better put away some money cause I could lose my job in the new year and I still got to pay rent and I still gotta buy food.’”

Celebre added that if people are wanting to save up for holiday shopping, it might be time to start now for next year.

“This can be a savings goal that they can achieve by planning in advance and setting money aside throughout the year,” he said.

—with files from The Canadian Press

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