Canadians Exceed Holiday Spending Expectations by $120 on Average
Despite their best intentions to keep holiday expenses in check, Canadian consumers found themselves spending significantly more than anticipated during the 2025 holiday season. According to new data from NerdWallet Canada, based on a survey conducted by The Harris Poll, the average holiday spending amount reached $828 per person, representing a substantial increase over pre-holiday projections.
The Budget Gap: Expectations Versus Reality
The survey reveals a notable disconnect between what Canadians planned to spend and what they actually spent. When polled in October 2025, Canadians who intended to purchase gifts estimated they would spend an average of $708. However, the post-holiday data shows actual spending averaged $828, creating a $120 gap between expectation and reality.
This overspending occurred despite most consumers not attributing it to poor planning. Only 7% of 2025 holiday shoppers cited inadequate planning as the reason for exceeding their gift budgets. The data suggests that external economic pressures played a more significant role in driving spending beyond planned limits.
Inflation Emerges as Primary Spending Driver
The survey identifies inflation as the primary factor influencing holiday spending patterns. A substantial 43% of 2025 holiday shoppers reported that the higher cost of living and inflation directly impacted the amount they spent on gifts during the past holiday season. This finding underscores how broader economic conditions continue to affect consumer behavior, even during traditionally festive spending periods.
To mitigate these financial pressures, many Canadians employed strategic shopping approaches. The survey found that 33% of holiday shoppers exclusively made purchases during sales, deals, and promotional periods. Additionally, 23% utilized loyalty points or cashback programs to help cover holiday gift expenses.
Supporting Domestic Products Despite Higher Costs
An interesting trend emerged regarding consumer preferences for domestic products. Despite higher price points, 20% of 2025 holiday shoppers reported purchasing more "Made in Canada" gifts compared to foreign-made alternatives. This suggests that some consumers prioritized supporting domestic manufacturers and businesses, even when it meant paying premium prices.
The survey also revealed that gift-giving remains a widespread practice among Canadians, with 89% reporting they purchased gifts for friends and loved ones during the 2025 holiday season. This high participation rate indicates that despite financial pressures, the tradition of holiday gift-giving remains deeply ingrained in Canadian culture.
Survey Methodology and Reliability
The Harris Poll conducted this survey online on behalf of NerdWallet from January 5-7, 2025. The study included 1,021 Canadian adults aged 18 and older, with 898 respondents having purchased gifts during the past holiday season. The sample data maintains a margin of error of +/- 3.7 percentage points using a 95% confidence level, providing statistically reliable insights into Canadian holiday spending patterns.
This comprehensive data offers valuable perspective on how economic factors, particularly inflation, continue to shape consumer behavior in Canada. As households navigate ongoing financial pressures, understanding these spending patterns becomes increasingly important for both consumers planning future budgets and analysts tracking economic trends.
