Many young Canadians expected to rely on credit for holiday spending

As the holiday season approaches, many young Canadians are planning to lean on credit to cover the cost of gifts.

A new survey from Chartered Professional Accountants (CPA) Canada reveals that 58 per cent of those aged 18 to 34 expect to use credit cards, or other forms of borrowing to fund their holiday shopping.

By contrast, older Canadians are taking a different approach. The survey found that about 70 per cent of those aged 55 and up plan to pay with their own money.

Overall, two-thirds of Canadians say they will rely on personal funds rather than credit this holiday season.

David-Alexandre Brassard, Chief Economist at CPA Canada, says the numbers reflect the financial pressures younger Canadians are facing.

“Unemployment is near recession levels,” he explained. “Younger Canadians have had a tougher year, and they rely more on credit cards and debt to fund the holiday season.”

Inflation is also playing a role. One student interviewed noted that everyday expenses such as clothing, jewelry, and food have become harder to manage.

“There has been inflation lately, so regular things…these expenses can be quite a lot,” they said.

Despite these challenges, Canadians across the board are expected to spend more this year. The survey shows consumers anticipate a 10 per cent increase in holiday spending compared to last year.

One shopper said she plans to spend around $1,000 to cover gifts for her large family, though she emphasized that she will be using her debit card rather than credit.

Financial experts warn that rising costs can easily lead to overspending. Stacy Yanchuk Oleksy, CEO of Money Mentors, advises shoppers to consider using cash to stay disciplined.

“I would suggest shopping with cash, literally going to the cash machine and pulling out cash,” she said. “As soon as we bring out our cards, be it tapping with our debit cards or credit cards, we tend to spend a little bit more.”