Canadians are preparing to spend more this holiday season. According to a recent survey from the Royal Bank of Canada, each Canadian plans to spend, on average, $15 more this year than last year. The average Canadians expect to spend about $640 on gifts this year. The number is higher, though, for Atlantic Canadians who report that they will spend $877 on gifts this year. They will also spend on decorations and entertaining -- to the tune of an extra $100 this year.
The news is being taken as a welcome sign that consumer sentiment toward the economy is improving. In the United States, Black Friday and Cyber Monday just broke records. Canadians are also shopping more, buying online, and visiting offline stores.
Making the Most of Your Holiday Spending
When planning holiday spending, it's important to make the most of it. According to a poll from TD Canada Trust, 80% of Canadians are influenced by discounts when making their holiday shopping decisions. There are plenty of good deals out there, so be sure to look for them. You can find good deals online, as well as in stores. Many Canadian retailers are starting to offer more deals before Christmas -- instead of waiting until Boxing Day for the best discounts (although you can still probably get great deals after Christmas).
You can also get more out of your holiday spending by using a credit card to maximize your rewards. Plan ahead, and earn a lot of points this holiday season. Earning perks and points and cash back. That way, you can offset some of your spending.
It's important, though, to budget for your holiday spending. This is because there's a good chance that you could overrun your planning. According to the TD Canada Trust survey, shoppers spent $521 more than planned last year. You don't want to be one of those, so it's importnat to track your spending and keep to a budget.
And, if you do decide to use a credit card, make sure you plan to pay it off as quickly as possible. The last thing you want to do is carry a balance.
Image source: Brandon Kua via Wikimedia Commons
Credit Cards are such a slippery slope. Often easier to rack up that debt than pay it off. I think we have a lot as consumers to learn, from the US economy. While it is easy to analyze how Canada is different, the bottom line is too many Canadians are carrying too much credit card debt.
It is almost impossible not to spend this time of year. I get almost sick every time I go out because I know I will be spending another $50-$100 on useless gifts. I think I need to lose some friends fast! LOL. They’re all starting to have kids now too! I don’t know how we are going to afford this in 5 years.
In many cases, it’s possible to give a family gift, rather than gifts for each child, or draw names, or stop exchanging gifts altogether.