Half of Albertans plan to spend less on holiday shopping this year due to inflation, rising cost of living

Holiday spending cooling for Albertans Albertans are feeling the economic crunch more than any other Canadians, according to a new survey. Nicole Di Donato explains.

Albertans are feeling the crunch of the current economic climate more than any other province in Canada, with half of residents planning to spend less on holiday shopping this year, according to a new survey from TD.

It found that 49 per cent of Albertans plan to spend less on gifts compared to last year.

Among those, nearly 80 per cent said the higher cost of living and inflation is forcing them to cut back.

Sixty-two per cent of Albertans cite not having enough disposable income, compared to the national average of 49 per cent.

Higher housing payments (27 per cent) and prioritizing saving (24 per cent) are also factors.

The survey suggests 49 per cent of Albertans are using the money for groceries instead, while nearly half say they don’t have any additional money to spend.

“As someone who’s young, we have to save as much as we can so we can do things later on,” said Victoria Francis, a Calgary resident.

Chase Mason, another Calgarian, added, “Everything is always rising, costs, all that stuff, so yeah, I definitely have a budget.”

The Calgary Downtown Association says those findings are not surprising and predicts where people spend their money will also change.

“It’s not just about consumerism, and buying products, I think we’ll see a transition that people will still go to restaurants, they’ll still go to the theatre. I think this holiday season, people are going to look at buying more of family interactions and family memories,” said Mark Garner, executive director for the association.

However, Garner says he is concerned for local businesses that rely on Christmas spending.

“I would like to encourage everybody that if you are going to spend money, that you support a local business this holiday season because if you support local, of that dollar you spend, 60 cents will stay in the local economy,” he said.

BUSIEST SHOPPING DAY IN DECEMBER

Moneris, Canada’s leading payment provider, still expects Canadians to be out in full force spending throughout mid-to-late December.

It predicts that Thursday, Dec. 21 will be the busiest shopping day of the season, both in-person and online. Monday, Dec. 18 and Friday, Dec. 22 come in a close second.

“Interestingly, all the top five busiest days in terms of transaction count occur on or after Black Friday, further supporting the last-minute shopper theory as customers hold out for the best sales,” a release from Moneris said.

FINANCIAL RESOLUTIONS FOR 2024

As 2023 comes to an end, a new survey from BMO found that nearly a third of Canadians plan to cut back on spending next year due to concerns about the rising cost of living and economic uncertainty.

The report found that 42 per cent of Canadians plan on changing their financial New Year’s resolutions, with 17 per cent creating financial goals and/or a budget for 2024.

But, Paul Seipp, Prairies central region president for BMO, says the majority of Canadians don’t have a financial plan or budget at all.

He has some tips for people looking to start fresh in 2024.

“Set your goals, then leverage tools that are available to you around financial literacy, looking at your credit of course, but also your spending patterns. So, what’s changed or what can be changed to help you with your cash flow?” he said.