Christmas shoppers trimming their spending

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This article was published 19/12/2023 (744 days ago), so information in it may no longer be current.

Sylvia Leung, a Brandon mother of two children, says she’s not in panic mode “just yet” when it comes to Christmas shopping and making ends meet, but added she’s “getting close.”

Leung walked down Rosser Avenue on Monday afternoon, with her five-year-old son and eight-year-old daughter, each carrying shopping bags.

For the first time since she and her husband became parents, they put a limit on how much they’re spending on gifts for the kids and each other, said Leung.

“We’re lucky that we both work, but our food bill keeps going up, and we’re surprised how much we pay for everything. So, we thought it would be better to put a limit on what we’re buying this year,” Leung said. “The kids won’t notice, and we’ve had credit card debt before, and we hated it.”

The Leungs are not alone in cutting back on Christmas spending.

More than 50 per cent of Canadians say they plan to spend less this holiday season compared to last year when it comes to gifts and social outings, according to a phone and online survey conducted by Nanos Research.

The survey found 54 per cent said they would spend less money this year than they did last year, which is an increase from 43 per cent in 2022.

Additionally, fewer Canadians said they plan to spend more this year than last, going from 10 per cent last year to four per cent this year.

Brian Hollenberg has a teenage daughter, and shook his head as he talked about the pressure he feels wanting to give her the gifts she wants.

“You want to make your kids happy, right?” Hollenberg said. “But how do I pass on the responsibility of proper spending to her, if I go overboard on buying?”

Many Canadians plan on trimming their lists this year, but when surveyed, 37 per cent said they are not confident they’ll be able to afford every item, and 51 per cent admitted feeling financial stress just thinking about holiday spending, according to an Ipsos poll conducted in November.

While there is no hard and fast rule on what to spend over the Christmas season, people should be careful not to put themselves in a negative position without having a plan to make up for it, said financial security adviser CJ Grambo with Belks Financial Strategies in Brandon.

“I think we all feel that we’re in a buying mood when it comes to Christmas, just from the feeling of the holiday,” Grambo said.

“Just make sure you’re spending that discretionary income and taking care of everything at home before you’re buying gifts for others,” Grambo said.

The key is being cautious and mindful of spending, added Grambo, and avoiding getting into credit card debt.

“That’s never a good idea, especially not right now. Interest rates are higher than they have been in the last five years. So, you’re going to feel the squeeze on that if you’re going into a debt situation to finance Christmas.

“In some cases, we have to do that because we don’t have that cash on hand. But this is something that comes around every year, so properly budgeting for it can be a strong tool to utilize throughout the year,” Grambo said.

The Ten Thousand Villages Brandon store on Rosser Avenue has the same number of shoppers coming in so far this holiday season, but there has been an “uptick” in certain items sold, said manager Stephanie De la Lus.

“Targeted shopping. People are coming in here with an intent — they know exactly what they are looking for,” De la Lus said.

“And that has changed over the years. I remember the days when we would sell more accessories and kitchen wares, which people are still buying, but they are gravitating towards things like coffee, hot chocolate, chocolate bars, socks and food.

“The gift giver wants to give something the person will use, and in here, something that’s ethical,” De la Lus said.

Consumer debt has increased in Canada over the past year, most notably credit card debt.

The average credit card balance for Canadians in May 2023 was $4,185, up from $3,909 at the same time in 2022, according to Transunion, which offers credit reports, scores, and ratings.

And Canadians are using credit cards more often, with a nine per cent increase in credit balances in June 2023 compared to the same time last year.

Financial security adviser Grambo said now is a good time to start thinking about next year and starting a Christmas fund.

“If you know you spend $1,000 or $500 on Christmas, plan for it properly, put $20 a paycheque away for those gifts. It’s an easier pill to swallow then, than paying for it all in one go,” he said.

“The strongest advice I can give is to sit down with a planner and start talking about where you want to be and how you want to get there. There are lots of investment tools for Canadians and new Canadians to take advantage of.

“And if you don’t know about it, then you’re missing out on a good piece. So, sit down with an adviser and hash that out.”

» mmcdougall@brandonsun.com

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