The holiday season is often described as the most wonderful time of the year, but according to new numbers from BMO’s Real Financial Progress Index, that isn’t the case for everyone.
Nearly a third of Canadians surveyed said they plan to cut back on spending in 2024 and, with the cost of living continuing to rise, 42 per cent are changing their New Year’s resolutions.
Seventeen per cent of respondents said they plan to create financial goals or a budget for next year.
Staff with the Lethbridge Food Bank say they are seeing some of the highest numbers of clients facing food instability in the history of the organization.
“In November, we served 750 households. Our average household is three people. So, you can kind of put that into perspective there. This month we would assume to hit 1,000,” said Mac Nichol, executive director of the food bank.
The research in the report was compiled by Ipsos from Sept. 11 to Oct. 9 from a sample of more than 2,500 adults.
The report also found that one of the leading causes of financial anxiety for those surveyed is fear of unknown expenses (82 per cent), concerns about their overall financial situation (81 per cent), family related expenses (65 per cent), and keeping up with monthly bills (61 per cent).
“It speaks to an underlying wage growth story that’s playing out,” said Paul Seipp, the regional president of BMO Prairies Canada. “But of course, folks are also being cautious with their spending as we approach the holiday season.”
Final numbers from the report say 58 per cent of people plan on using their credit cards to pay for holiday gifts.
It found that, on average, Canadians believe it will take them three months to pay back their holiday bills. Twenty-four per cent said they are not confident that they will be able to pay off their bills on time.
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