34% of Ontarians cutting back this holiday season: TD survey

A new survey from TD shows 34 per cent of people in Ontario are cutting back on holiday spending, but things like flash sales could lead some to blow their budgets.

As the holidays near, many people in Ontario plan to cut back on spending, citing rising costs and inflation as key reasons.

The stark reality is laid out in a new TD survey released Monday, with 34 per cent of Ontarians saying they’ll be curbing their holiday spending.

Of those who plan to cut back, 65 per cent say the higher cost of living remains a key factor, while 51 per cent blame a lack of disposable income.

“I think a lot of it is even pressures of trying to achieve more than the previous year and potentially making up for lost time throughout the pandemic,” said Anthony Celebre, a branch manager at TD in Barrie, Ont. “With returning to normal, now we have the expectation that OK, we have to make this holiday extra special and therefore go above and beyond the previous year.”

Celebre said that while there’s an expectation among some wanting to ensure a special holiday, many are unsure what they can and cannot afford given other expenses.

The survey showed that those who are cutting back have differing priorities in terms of what they will spend their money on.

For example, 50 per cent of those spending less say they plan to cut back on social spending like eating out or going to a holiday party, while about 47 per cent say they are cutting back on gifts for family and 39 per cent say they’re cutting back on gifts for friends.

“When we know what the cost of something will be, such as a gift for a loved one like a family member or a friend, I think it’s an easier pill to swallow and eating the cost,” Celebre said. “But sometimes there’s some variables. So going to a social gathering, especially if it’s outside the home and maybe at an event space, there’s some variables on how much that would cost.”