A 2020 holiday spending study by CPA Canada has shown that despite the pandemic shoppers have managed to save money for holiday gifts, and most people will be spending $588 this year compared to $583 in 2019. In a normal year most people would be busy making lists and planning celebrations but this is far from a normal year and even though Covid-19 continues to ravage the economy most people have managed to set money aside for gifts even if they cannot celebrate with work colleagues friends and loved ones.
People will spend the most on gifts this year - To try and make up for this difficult year and treat themselves people will spend money on electronics, furniture and beauty products. Old fashioned gifts such as board games will be popular as people will be stuck at home.
Spending on entertainment will be down - The survey showed that 13% of respondents planned to spend nothing at all on entertainment outside of the home, and those who are venturing out plan to spend less than $200. The usual Christmas socializing will not be happening, no corporate or personal Christmas parties, so there will be no temptation to overspend, for example on fancy clothing.
There will be a lot less travelling - Travel is expected to take a big hit, over a third of respondents to the survey said they would not be spending anything on travel, 38% will be spending less than $200. Travel can be a big expense for families at Christmas but most will be staying close to home this holiday season.
In person shopping will be down - Only 30% of respondents to the survey planned to shop in bricks and mortar stores and will be shifting to online options. One in three people will be doing the majority of their shopping online compared to one in five in 2019. Rushing around crowded malls to do last minute shopping will not happen for most shoppers this year, instead they have to plan their shopping online early in order to get deliveries in time for Christmas.
It's ok to treat yourself - Financial experts say that Canadians should not be too concerned about treating themselves this Christmas as long as they do not go too far overboard. After a tough year everyone should enjoy themselves at Christmas.
From an article by Margaret Craig-Bourbon
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