Can they afford it? Canadians plan to spend 8% more holiday shopping this year — Here are 4 ways to spend mindfully and avoid going into debt

Set a budget

Setting a budget is one of the best things to do for yourself financially, regardless of the time of year. But when it comes to tackling holiday spending, it’s essential to set up spending parameters to ensure you don't go off the deep end.

When divvying up your budget, consider all facets of holiday spending like gifts, decorations, food, parties, travel and more. That way, you have a comprehensive understanding of your expected expenses and can plan accordingly.

Using a budgeting app can simplify this process as it is exactly what their platforms are designed for.

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Reap the rewards of rewards credit cards

Not only is it wise to use a rewards credit card so you can reap whatever benefits it provides down the line, but it is also worth seeing what rewards you’ve accumulated and use them to pay for some of the items on your shopping list.

You can even make it a goal throughout the year to save up a portion of the credit card rewards you earn to fund your holiday shopping when the time comes.

Even if this isn’t something you can make use of this year, it’s worth looking into some of the rewards credit cards in Canada to prepare for the future.

Seek out discounts and deals

Shopping the pre-holiday sales might be a no-brainer, but it’s worth mentioning.

It’s easy to get excited and want to check off everything on your holiday to-do list as soon as possible. But, waiting for sales like those that pop up on Black Friday might be worth the wait to shave some dollars off your total holiday spend.

According to the RCC survey, 48% of Canadians say Black Friday is the most important shopping day, with 38% waiting for peak sales. This is up from 34% in 2023.

Keep an eye out for flyers or e-mail newsletters for your favourite stores to browse the promotions that are available.

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Get creative

Take a page from a child’s book this holiday season and get creative. This doesn’t mean you have to make ornaments out of popsicle sticks or gift your mom your painted handprint, but it does mean you can use the holidays as a time to cut costs and even cut down on your carbon footprint.

Whether for decor or gifts, consider stopping by a thrift store to see what options they have — you can even reuse things in your home to wrap gifts or re-purpose as something new for someone you love. TikTok’s underconsumption trend is a great place to seek some inspiration for ways to spend mindfully during the holiday season.

Sources

1. Retail Council of Canada: RCC x Leger Holiday Shopping Survey 2024 (Oct 18, 2024)