Christmas presents, in this economy? How some people are shifting their spending

harken, put up you try it?

It's barely audible over the sound of a zillion people muttering, "isn't it too early for this?" while sipping holiday lattes, but it's there: the sound of Christmas spending panic.

And this year's holiday season approaches amid soaring grocery prices, trade tensions and economic uncertainty. Which is why some people say they're planning a more modest Christmas, whether that involves spending less, giving fewer or more intentional gifts, relying more on charitable services, or scaling it all down.

On social media, for instance, influencers and frugal bloggers are encouraging people to "de-influence" their holidays by forgoing the matching family jammies, reusing Christmas decorations, sticking with affordable advent calendars and buying second-hand gifts.

"I can't afford the kind of Christmas you see online," said one U.K. Money and family influencer in a TikTok video Thursday. "It's not normal to spend hundreds just to make it look perfect for social media."

"With groceries at an all-time high, as well, gifts didn't really make it into our budget," Field said.

She's always valued not gifting in excess, but she recently decided to give only items that are thrifted or sourced from her neighbourhood "buy nothing" groups. Her kids — three boys ages 7, 5, and 3 — started a tradition last year where they go to a thrift store and each pick out one gently used stuffy to give each other.

She re-uses paper grocery bags for gift wrap and saves points from their "exorbitant" grocery bills to pay for gifts for others when used isn't an option.

"We don't want to purchase an item, even second hand, that will be used for a short moment in time then discarded or passed along — giving into that dopamine hit we all get with a gift," Field said.

"To us, this doesn't seem like a good way to make use of an ever-dwindling portion of our budget."

Several recent surveys and forecasts tell a similar story. While they can't necessarily be projected as truly representative of the overall Canadian population, the recurring patterns across different surveys from different sources suggest the presence of an emerging trend: amid rising prices, many Canadians are planning to spend less.

A brand new report by Money Mart, for instance, says the majority of the 1,511 Canadians they polled via Angus Reid said inflation will impact their holiday spending this year, and more than a third plan to spend less — especially on gifts.

Another survey by insolvency firm Harris & Partners released last Tuesday shows most respondents are preparing for a more modest Christmas, with the majority saying they plan to cut back on Christmas spending this year, and more than half saying they felt anxious about how to afford it.

"For a large number of people, there is simply less financial flexibility available," CEO Josh Harris said in a news release.

Climbing food prices increase demand for holiday hampers

In October, consulting group PwC Canada's holiday outlook noted that the majority of Canadian consumers they polled plan to cut back to make every dollar count, "making hard choices about where to spend their money."

Gen Z and millennials, in particular, planned to spend less on gifts this year, the PwC report said.

As Canadians feel the pinch, many charities are already reporting greater demand this year.

For instance, the Food Bank in Barrie, Ont., just launched a holiday campaign to try to meet the need as demand has outpaced donations. In Edmonton, several local charities told local media the level of need has grown, and that thousands have applied for festive food hamper and grocery card programs.

The Salvation Army in Weyburn, Sask., is rolling out a "toy store" initiative that allows parents to select donated gifts for their children. The Single Parent Association of Newfoundland and Labrador reported in October that 1,200 kids were already signed up to receive Christmas presents, up from 800 to 900 kids at most in previous years.

Christmas is already on the minds of 1,200 kids who have registered for the Single Parent Association’s program

And in Winnipeg, climbing food prices have increased the demand for holiday hampers compared to previous years, with its Christmas Cheer Board receiving hundreds of calls within hours of opening last week.

With consumers projected to spend less or with more intention, some businesses are adapting. Costco, for instance, said it was cutting down on seasonal offerings to focus on essentials, according to media reports.

A number of retailers are rolling out early Black Friday Sales. And IKEA Canada's holiday campaign urges shoppers to give people "something they actually need."

Reuters notes that toy manufacturers are rushing into the "blind box" trend as an affordable gift option. Blind boxes are sealed boxes with a collectible "mystery" item inside, usually part of a themed series. Some only cost a few dollars, making them appealing stocking stuffers.

This comes as U.S. Market research provider Circana anticipates sales volume for toys may fall by as much as 2.5 per cent during the peak shopping months of November and December.

But for some shoppers like Field, the mom of three in Ottawa, it's not necessarily about the gifts, but the message.

"The economic situation we're in has forced me to get creative with gift-giving, but in turn, has reminded me what these seasons are really about," she said.

"Reminding someone that they are noticed and appreciated doesn't have to cost anything."

Senior Writer & Editor

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