Pattie Lovett-Reid: Don't abandon your financial dreams
BNN Bloomberg
A new survey out Thursday from Manulife Bank found that 61 per cent of Canadians were still planning on buying gifts this holiday season. That is a decrease of five per cent from the fall of 2018.
The pandemic has wreaked havoc on so many elements of our lives. From home affordability, to buying gifts over the holiday season, to the negative impact on our mental health.
A new survey out Thursday from Manulife Bank found that 61 per cent of Canadians were still planning on buying gifts this holiday season. That is a decrease of five per cent from the fall of 2018.
In fact, there is a cautious tone following the financial upheaval of the pandemic.
Three years ago, 61 per cent were willing to go into debt to buy presents. The current survey revealed that number has dropped to 53 per cent and only one in five said their holiday budget is higher this year.
In the midst of the pandemic, families that may never have experienced a degree of financial flexibility found themselves paying down debt. Spending restrictions and government support programs resulted in a little financial freedom. Money was spent wisely trumping the old desire to spend at all costs. For households who had been racking up debt and spending as if there is no tomorrow, this new money mindset could be a very good thing for their household in the long run.
However, clearly this isn't great news for retailers still struggling to get into the black this holiday season. Retailers remain hopeful those that can afford to spend will continue to do so responsibly. Yet, at the same time it is understandable that households are cautious, not wanting to repeat past spending tendencies while grappling with the fear of the unknown and risks associated with the pandemic.
