Canadians expect to spend an average of $652 but impulse purchases by majority could lead to overspending for many
TORONTO, Dec. 1, 2015 /CNW/ – As the holiday season approaches, Canadians say they plan to spend an average of $652 on holiday shopping this year according to the latest poll by CIBC (TSX:CM) (NYSE: CM). That’s a significant 26 per cent increase from last year when a similar CIBC poll found that Canadians had planned to spend $517 on average.
While the majority of Canadians (94 per cent) have a budget for their gift giving, more than half (55 per cent) admitted their holiday budgets aren’t set in stone and because they tend to favour convenience over price, they might buy on impulse.
“It’s easy for expenses to creep higher at this time of year, adding to the stress of the season but what people actually want to do is enjoy the holidays and not worry about money,” says Veni Iozzo, Senior Vice President, Deposits and Client Solutions, CIBC. “Whether your holiday shopping list is long or short, having a realistic budget with a small buffer for contingencies can reduce some of the worry and let you enjoy the holidays.”
Key findings of the poll include:
The poll also found that the older you are the more you’re likely to spend:
“Sometimes it’s not the gift-buying that derails our budgets, often it’s the stuff that we don’t factor in such as new decorations or having extra food, drinks or gifts on hand in case the neighbours drop by,” Ms. Iozzo says. “Having a list and checking it twice is good practice to help keep your budget in check and offset your holiday hangover when January arrives.”
Canadians say they are avoiding holiday-related debt
Looking back on their holiday spending last year, the poll found that just 22 per cent of Canadians spent more than they had planned. The poll also found that many Canadians are trying to manage their holiday-related spending:
“Paying as you go or paying off credit card balances as they come due are both good practices but one of the best ways to stay jolly throughout the season is to keep your spending within your means,” Ms. Iozzo says. “Avoid dipping deeper into your savings than you’re comfortable – you don’t want to still be feeling the financial effects of the holidays long after they are over.”
KEY POLL FINDINGS:
Average amount much Canadians say they plan to spend on holiday shopping this year, by age:
Average amount Canadians say they plan to spend on holiday shopping this year, by region:
How Canadians say they approach their holiday budget:
What puts Canadians over budget during the holidays, aside from buying gifts:
When Canadians say they will have paid off their holiday spending:
How Canadians feel about the amount spent on last year’s holiday shopping:
From November 16-17, 2015, an online survey was conducted among 1,503 randomly selected Angus Reid Forum panelists. The margin of error – which measures sampling variability – is +/- 2.5%, 19 times out of 20. Discrepancies in or between totals are due to rounding.
About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units – Retail and Business Banking, Wealth Management and Capital Markets – CIBC offers a full range of products and services through its comprehensive electronic banking network, banking centres and offices across Canada with offices in the United States and around the world. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.