Despite affordability issues and financial anxiety, British Columbians are planning to spend more during the holidays than any other province.
On average, B.C. residents plan to spend more than $2,334 during the holidays – $343 more than the national average, according to the BMO Real Financial Progress Index survey.
B.C. respondents to Thursday’s survey said they plan on spending $2,045 on average for travel, $504 for holiday gifts, $320 for entertainment, $177 for decorations and $374 for other holiday expenses.
At the same time, British Columbians are more likely to feel less financially secure compared to last year, with 53 per cent saying holiday spending causes them financial anxiety compared with 50 per cent nationally.
Eighty-three per cent are also concerned about unknown expenses, 80 per cent are concerned about their financial situation, 77 per cent are concerned about housing costs and 62 per cent concerned about monthly bills.
Despite this financial anxiety, 73 per cent of B.C. respondents say they will be able to afford everything on their lists – six percentage points above the national average.
However, the survey shows this confidence comes from personal financial adjustments.
Seventy-seven per cent of B.C. residents are planning on lowering their spending during the holidays, which is two percentage points below the national average.
Twenty-four per cent will cut down the number of people on their gift list and 37 per cent will be buying less expensive gifts.
This was also the case for other occasions throughout the year, with 43 per cent of respondents cutting back spending on birthdays and anniversaries.
Canadians still willing to give back in spite of financial anxiety
Nationally, just over half (55 per cent) of Canadians will be using credit cards for their gifts and five per cent will use buy-now-pay-later tools.
Nonetheless, a significant number of Canadians might not pay their holiday bills on time.
On average, most believe it will take them three months to pay, 21 per cent say they aren’t confident they will be able to pay in time and 11 per cent aren’t sure when or if they will be able to.
Even with these worries in mind, the survey suggests 63 per cent of Canadians are still planning on giving back these holidays with an average of $275 going to charity. Fifty-nine per cent say their charitable giving will remain the same as in previous years.
BMO’s survey was conducted Sept. 2-14 with a sample of 3,404 adults across the country.
