Canadians to curb holiday spending: RBC

It looks as if Canadian shoppers will be clutching their purse strings more tightly this holiday season.

According to an RBC survey, about one-third (31%) will be spending less on all of their holiday expenses this year. More to the point, they are planning to shell out $100 less, an average of $624.

RBC also reports that 55% said they will be spending the same as they did in 2009, and a staggering 18% replied that they cannot afford to buy gifts at all.

“Canadians are clearly keeping an eye on household spending and taking a cautious approach when it comes to holiday purchases,” said Karen Leggett, senior vice-president with RBC Cards and Payment Solutions.

Of course, holiday spending entails more than just gift giving. Canadians are expecting to spend approximately $1,137 on the holidays including gifts, decorations, entertaining and travel.

How will Canadians pay for all of their holiday merriment? Sixty-three percent plan to use their savings; 21% will use credit cards. Twenty percent are not sure how they will do so.

The survey of 3,160 adults was carried out by Ipsos Reid from Oct. 4 to Oct. 11. The estimated margin of error is plus or minus 1.7 percentage points, or 19 times out of 20.

A similar survey of American shoppers found they are also scaling back significantly this year. Read: American shoppers in a dour mood

(11/10/10)