Canadians to Spend Less This Holiday Season

Rising living costs drive consumers to trim budgets for the upcoming 2026 holiday season.

Updated on Oct. 24, 2026 in Spending

Gouache-painted illustration of a pine branch with a ribbon, symbolizing a modest and mindful approach to holiday budgeting in Canada. — Rising costs for Canadian households are leading nearly one in three consumers to reduce their holiday budgets for the 2026 festive season. AI Illustration. Upload story photo >

Live Poll

Do you plan to spend less on holiday shopping this year compared to last?

Nearly one in three Canadians plan to reduce their holiday spending as the 2026 holiday season approaches. Overall budgets are expected to tighten compared to the previous year.

Why it matters

Persistently high inflation and a rising cost of living have forced many households to reconsider their festive spending habits. These financial pressures are changing how families manage seasonal gift exchanges and overall holiday expenses.

A reported 29 per cent of Canadians intend to lower their holiday expenditures, while projected spending on gifts and gift cards will drop by 5 per cent. The average budget is now $1,300, down from $1,521 in 2025.

The details

To manage limited funds, consumers are increasingly turning to store brands and second-hand items. Many families are also opting to organize Secret Santa gift exchanges to keep total household expenditures under control.

Average holiday budgets were $1,521 in 2025.
Families typically perform Secret Santa name pulls in early October.
Canadians plan to reduce holiday spending for the 2026 holiday season.

Market Dynamics

This decline reflects a broader contraction in consumer confidence following the spending levels observed during 2025. It signifies a shift away from record-high seasonal expenditures as households adapt to a more restrictive macroeconomic environment.

Retail investors may anticipate lower quarterly revenue for major consumer discretionary brands as shoppers prioritize value-oriented options. Managing personal savings strategies now may help families better align with the lower $1,300 average budget.

The takeaway

Consumers can mitigate holiday financial stress by prioritizing intentional gift-giving strategies like group exchanges early in the season. Planning purchases well in advance remains the most effective method for staying within a reduced budget.