Holiday Spending 2025: Canadians Are Pinching Pennies, Hustling Harder, Rethinking The Gift List

The holiday season may be wrapped in twinkle lights and good intentions—but for many Canadians, the reality behind the ribbon is financial stress. According to NerdWallet Canada’s 2025 Holiday Spending Report, most Canadians are planning to spend roughly the same as last year—yet nearly everything about how they’re spending has shifted. VITA Daily Q+A

“In many ways, this year’s shopper is incredibly strategic,” says Shannon Terrell, personal finance expert at NerdWallet Canada. “People are only buying on sale, spending less per person, and paring back gift lists. They’re not abandoning the holidays—they’re adapting.”

Inflation Is Still Running the Show

A staggering 86 per cent of Canadians say inflation is changing how they shop this season. Nearly half plan to keep gift spending under $500, and 15 per cent are spending $100 or less.

“Canadians have been battered by the rising cost of living,” Terrell explains. “People are becoming more intentional out of necessity—setting stricter budgets, exploring no-cost gifts, and being honest with friends and family about their limits.”

Holiday Debt Is the Ghost That Won’t Leave

More than half of Canadians took on holiday credit card debt last year, and 28 per cent are still paying it off in 2025—especially Gen Z and Millennials.

“Holiday debt becomes especially sticky when it’s added to an existing balance,” Terrell says. “If you’re only making minimum payments, that balance can take months—sometimes years—to clear.”

Her advice? “If you’re battling high-interest debt in January, a balance-transfer credit card can help you pay down what you owe without snowballing interest.”

Gen Z vs. Millennials vs. Boomers—Three Very Different Holiday Realities

Each generation is approaching holiday spending from a completely different financial reality.

Gen Z—Hustling to Make It Work: Gen Z is the most likely to use side hustles to fund gifts, redeem rewards, shop with coupon and cashback apps, and use buy now, pay later services.

“Gen Z is under more pressure from lingering debt and tight budgets,” Terrell says. “But they’re also the most likely to stack discounts and pick up extra work just to make gifting possible.”

Millennials—Big Hearts, Bigger Financial Risk: One-third of Millennials plan to spend over $1,000 on gifts—yet many are also dipping into emergency savings.

“At the end of the day, we’re the ones who deal with the financial fallout—not our family and friends,” says Terrell. “Setting spending limits for each person can help avoid the debt hangover in January.”

Baby Boomers—The Steadiest Spenders: Boomers are the least likely to carry holiday debt and the most likely to set strict budgets, shop local, and avoid financing gifts with credit.

“They’ve had decades to build financial stability,” Terrell explains. “They’re not juggling student loans, childcare, or first-time home ownership. Their discipline reflects both habit and life stage.”

Sales, Rewards & Side Hustles—What Actually Saves You Money?

Canadians are leaning heavily into deals, cashback, and points—but not all “savings” are real.

“A deal is only a deal if you planned to buy the item in the first place,” Terrell says. “Scarcity marketing, bundling, and FOMO trigger overspending fast. Learning to spot those tactics is one of the strongest money skills you can build.”

How Canadians Are Cutting Holiday Travel Costs, Too

Gift budgets aren’t the only thing shrinking. Nearly 70 per cent of holiday travellers are choosing flights, hotels, and accommodations based on price over convenience—a sharp increase from last year.

Using credit card rewards for flights, choosing cheaper lodging, and traveling less luxuriously are now the norm.

Shannon Terrell’s 3 “Start Tonight” Tips for a Regret-Free January

If you want to enjoy the holidays without financial anxiety in the new year, Terrell says start here:

1. Make lists and set real budgets: “Know exactly what you need before you shop. It prevents impulse spending.”
2. Spend strategically: “If you collect rewards, maximize them—and redeem what you’ve already earned.”
3. Be honest about your limits: “Don’t sacrifice your financial wellbeing for the sake of tradition. Suggest experiences over exchanges—game nights, outdoor activities, volunteering. There are meaningful ways to show up without going into debt.”

The Bottom Line

This year’s holiday season is less about excess—and more about adaptation, resilience, and realism. Canadians aren’t cancelling Christmas—they’re rewriting it to fit the financial moment we’re in.

As Terrell puts it: “The holidays only last a short time. The financial consequences can last much longer.” —Noa Nichol