2025 Canadian Holiday Spending Report

Over 28 million Canadians (88%) plan to spend approximately $20.3 billion on gifts during the 2025 holiday shopping season — an average of $708 per shopper, similar to $698 last year — according to a NerdWallet survey of more than 1,000 Canadian adults conducted by The Harris Poll. But the minimal difference in spending doesn’t tell the whole story.

The reality is that rising costs are changing the gift-giving landscape. For Canadians, this year’s holiday shopping gauntlet will be defined by creative budget-stretching strategies, like gift-funding side hustles and credit card reward-point redemptions, alongside sharp generational divides in how far those budgets need to go.

Key findings

More Nerdy Perspective

“Having sticky debt isn’t necessarily a bad thing. You may have taken advantage of a 0% balance transfer, for example, and are paying off the debt over time. However, if last year’s balance is still being hit with high interest, adding more debt will only make the snowball bigger. Check if your issuer offers installment plans with lower rates, and set yourself a strict budget this holiday season until your existing debt is settled.”

Georgia RoseCredit card writer

Holiday budgets are split: big spenders drive up averages despite debt and inflationary pressures

2025 holiday shoppers plan to spend $708 on average on gifts for friends and loved ones this year, similar to $698 in 2024. But ho-ho-hold off on padding your wish list with lavish asks — that similar spend may not go as far as it did last year.

This year’s modest bump in average spending likely reflects a small but influential group of big spenders: 26% of 2025 holiday shoppers plan to spend a whopping $1,000 or more on gifts this holiday season. The reality for a larger portion of Canadian gift-givers is a tighter budget. Nearly half of 2025 holiday shoppers (46%) plan to spend less than $500, including 15% who’ll spend $100 or less this holiday season.

Diverging holiday budgets aside, debt remains a concern. More than half of 2024 Canadian holiday shoppers (56%) incurred holiday credit card debt last year, and more than a quarter of them (28%) are still paying off last year’s gifts.

A growing group of holiday shoppers (12% in 2025 vs. 9% in 2023) plans to take on fresh debt using buy now, pay later services to purchase holiday gifts this year. Interest in this tactic is highest with Gen Z (ages 18-28, 19%), followed by Millennials (17%), Gen Xers (10%) and Baby Boomers (6%).

Holiday debt — old or new — begs the question: are Canadians budgeting for the seasonal spending marathon? A majority don’t. Only 45% of 2025 holiday shoppers say they set a strict budget for gifts this year, which means over half don’t set firm spending limits.

Whether you make a list and check it twice or let your heart guide your cart, one thing’s certain: inflation will be as persistent and unavoidable this year as Mariah Carey on repeat.

Inflation continues to rewrite the Canadian gift-giving playbook

Rising prices have some shoppers reconsidering their Secret Santa commitments. A vast majority of 2025 holiday shoppers (86%) say they will take actions to change their shopping habits in response to inflation this year.

Some intend to scale back by giving gifts to fewer recipients (32%) or by spending less per person than in years past (35%). Others are getting strategic with tactics like only buying gifts on sale (36%), redeeming credit card rewards (28%) and picking up side hustles to supplement gift budgets (19%).

 “Shop local” sentiments soar to a three-year high

The Buy Canadian movement flourished during the U.S.-Canada trade war. And there’s evidence to suggest it remains top-of-mind for some Canadian shoppers this holiday season. Roughly a third of 2025 holiday shoppers (32%) say they’ll adjust how and where they purchase gifts this holiday season due to tariffs.

As of this writing, Canada has removed many of its retaliatory tariffs against the US. But months of yo-yo-ing trade policy changes have likely influenced how and where Canadians spend their money.

Three in ten 2025 holiday shoppers (30%) say they’ll shop more at local businesses for gifts this year to support their community, up from 25% in 2024 and 24% in 2023 — the highest in the three-year view. More than a third of Baby Boomer holiday shoppers (36%) say they’ll shop more at local or small businesses this holiday season, along with 30% of Gen X, 26% of Millennial and 25% of Gen Z shoppers.

Stark differences separate generational shopping habits

Beneath broader shopping trends is a more complex story. The way each generation approaches gift giving hints at very different financial realities.

Gen Z: Indebted deal hunters and side hustlers

Fifty-six percent of 2024 holiday shoppers say they incurred credit card debt for holiday gifts last year. Nearly 7 in 10 Gen Z shoppers (69%) took on holiday credit card debt, followed by 63% of Millennials, 64% of Gen Xers and just 39% of Boomers. For some of those shoppers, the debt hasn't disappeared, either: more than 1 in 4 who incurred credit card debt for gifts last holiday season (28%) are still chipping away at last year's holiday balances, including 37% of Gen Z.

This sticky credit card debt could be contributing to tighter budgets, with nearly half of Gen Z 2025 holiday shoppers (46%) planning to spend $200 or less on gifts this year, compared with about 1 in 4 Millennial (28%) and Boomer (26%) shoppers, and just 1 in 5 Gen X shoppers (20%).

Gen Z 2025 holiday shoppers are edging out older age cohorts across other notable gift-finding and funding behaviours, as well. They’re more likely than older generations of 2025 holiday shoppers to:

Gen Zers may be struggling with debt more than their older counterparts, but they’re also striving to stretch every dollar. In fact, it could be argued that Gen Z is shopping smarter and hustling harder than older generations — in some instances, by a significant margin.

Millennials: Generous gifters — but at what cost?

Got a gift exchange lined up with a Millennial friend or family member? Lucky you. One-third of Millennial 2025 holiday shoppers (33%) plan to spend $1,000 or more on gifts this year, compared with 21% of Boomer and just 16% of Gen Z holiday shoppers. The question is: how are Millennials funding the splurge?

Some plan to dip into emergency savings. Eighteen percent of Millennial 2025 holiday shoppers say they will likely need to use some of their emergency savings to buy holiday gifts this year, along with 22% of Gen Z, 14% of Gen X and just 5% of Boomer holiday shoppers.

Compounding the affordability question for this generation is lingering credit debt. Nearly a third of Millennials who took on credit card debt for their 2024 holiday shopping (30%) are still paying it off, along with 37% of Gen Z, 27% of Gen X and 19% of Baby Boomers.

Millennials are not far behind Gen Z in holiday debt accrual or emergency-fund withdrawals to fund gifts. It may feel nice to gift big, but the most generous generation’s holiday habits could lead to financial strain well into the new year.

Seasoned shoppers: Baby Boomers are buying local but shirking credit card rewards

Baby Boomers appear ready to tackle the holiday gift gauntlet from a position of financial stability. 2024 Baby Boomer holiday shoppers were least likely to take on holiday shopping credit card debt last year (39% vs. 69% Gen Z, 63% Millennials, 64% Gen X), and those who did were quick to clear their balances. Half of Boomers who took on 2024 holiday credit card debt (50%) paid it off within the first statement, compared with 31% of Gen X and 25% of Millennials.

Baby Boomers are less inclined than younger generations to pursue alternative methods of gift funding. In response to rising inflationary costs, only 20% of Baby Boomer 2025 holiday shoppers plan to use credit card rewards to pay for gifts, compared with 32% of Millennials and 41% of Gen Zers.

The bottom line? Baby Boomers appear less willing to leverage debt or rewards programs for gifts. This behaviour could be a byproduct of having a bigger savings cushion, carrying different spending priorities — or both.

Holiday travel is getting the budget-conscious treatment

Gifts aren’t the only line item under scrutiny in holiday budgets this year. Canadians are taking strategic steps to save money on holiday travel, too.

More than two-thirds of 2025 holiday travellers, defined as those who plan to spend money on flights/hotels this holiday season (69%, up from 60% last year), will take action to save money on their upcoming holiday travel-related expenses. Choosing flights based on price instead of convenience (27% vs. 15% in 2024), using credit card rewards to cover travel costs (24% vs. 16% in 2024) and choosing lodging based on price instead of amenities (21% vs. 16% in 2024) have all risen in popularity this year compared to last as ways to save on holiday travel costs.