Dec 16, 2025
Canadians are taking a more pragmatic approach to the holidays this year, scaling back on gifts and embracing simpler gatherings as financial pressures reshape long-standing traditions.
A new poll from Simplii Financial finds that 41% of Canadians expect to change their holiday plans, while a third have already adjusted traditions in recent years to relieve stress and save money. Many are now opting for useful gifts, firm spending caps and scaled-down festivities to keep budgets in check.
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“Many Canadians are proceeding with their holiday plans, but they're making changes to accommodate the uncertain economic environment,” said Atanaska Novakova, EVP and Head of Simplii Financial, in a statement.
Canadians cut back while keeping celebrations meaningful
The findings underscore a holiday season shaped by financial caution rather than cancellation. More than one in five Canadians (22%) say they won’t spend anything on the holidays this year. Among those who do plan to spend, the average expected outlay is $1,708, about $341 less than last year.
Budgeting is also becoming more central to holiday planning. According to Simplii, 37% of Canadians now follow a budget for seasonal spending, and many are intentionally simplifying their celebrations.
Gift-giving habits are also changing. Nearly 78% wish they could save more during the holidays, 52% say they can’t afford the spending but feel pressure to participate and 48% plan to give gift cards, which rankis as the most popular gift option. Four in 10 Canadians who have changed their traditions say they’re setting spending caps to reduce the financial strain.
“The rising cost of living is forcing Canadians to rethink what the holidays look like,” Novakova said. “It's not that Canadians want to scale back celebrations; they simply want to enjoy them without the added financial stress.”
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Household budgets already stretched before December
The cautious mood comes against a backdrop of persistent financial squeezing. StatCan’s latest Consumer Price Index (1) shows a 2.2% rise year-over-year as of October, with grocery costs around 3.4% higher compared to the same time last year.
It's no surprise that holiday spending is becoming more restrained and more strategic. Many Canadians are prioritizing gifts that are practical, meaningful and easier to budget for, while leaning more heavily on sales, promotions and lower-cost alternatives.
Even so, many are eager to channel their Christmas spirit by giving to others this season. Simplii notes that 61% of Canadians plan to give back through food banks, toy drives, charitable contributions or volunteering, proving that community-oriented giving remains central, even when budgets are tight.
Holiday spending outlook: Smaller budgets, smarter choices
For a majority of Canadians, this year’s trends point to a holiday season marked by moderation rather than abundance. While most are still eager to celebrate, many are doing so with clearer spending limits, more intentional choices and a stronger focus on togetherness.
With household costs expected to remain elevated into 2026, the shift toward practical, values-aligned holiday spending is likely to become a common theme well beyond this holiday season.
Article sources
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Statistics Canada (1)
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
