Canadians tighten budgets and boost vigilance as costs climb and digital fraud risks surge this season
Holiday budgets are under siege this year, as inflation, rising costs, and a surge in sophisticated scams force Canadians to rethink how—and how much—they spend.
According to Money Mart’s 2025 Holiday Spending Survey, nearly eight-in-ten Canadians say inflation will impact their holiday spending, with over a third planning to spend less than in previous years.
The pressure is particularly acute for younger Canadians: 53 percent of Gen Z and 48 percent of Millennials are concerned about balancing holiday costs with everyday expenses, compared to just 34 percent of Boomers.
While 81 percent of respondents feel confident managing their holiday budgets, almost three-in-ten admit they are not prepared for unexpected expenses.
“Canadians are financially savvy, but the holidays can stretch even the most careful planners,” said Peter Kalen, CEO of Money Mart, highlighting the tension between resilience and financial reality.
This caution is echoed in the retail sector, where a BMO survey found that three in five Canadians are adjusting their holiday spending plans, with 41 percent scaling back and 15 percent budgeting more in anticipation of higher prices.
On average, Canadians expect to spend $2,310 this season, covering travel, dining, decorations, and gifts.
Notably, 37 percent are seeking out goods minimally affected by tariffs, such as those made in Canada, and a quarter have started shopping early to avoid price hikes.
Tony Tintinalli, head of specialized sales at BMO, observed that many Canadians feel uncertain about the future. “There’s this general concern from Canadians of maybe needing to be really fiscally responsible over the holiday,” he said.
He added that people remain cautious because “there’s still a little bit of uncertainty about where things are headed next year.”
But it’s not just inflation and tariffs weighing on Canadians’ minds.
As reported by BNN Bloomberg, the holiday season has become a prime target for fraudsters leveraging new technologies like artificial intelligence.
Larry Zelvin, head of the financial crimes unit at BMO Financial Group, warns that AI-powered scams, fake retailer websites, phishing emails, and malicious QR codes are proliferating.
Digital pickpocketing—where criminals skim data from phones in crowded places—is also on the rise.
Last year, 2.6 percent of online transactions in Canada between Thanksgiving and Cyber Monday were flagged as fraudulent, a 51 percent increase over the previous year, with older consumers disproportionately targeted.
Despite these challenges, the majority of Canadians still plan to shop during Black Friday and Cyber Monday, though with a more cautious approach.
According to Boston Consulting Group, 77 percent of consumers are looking for deals, but planned spending is down and the sentiment is “cautious but steady.”
Experts recommend vigilance: avoid clicking on links in emails or texts, verify website security, use credit cards for stronger fraud protection, and be wary of “limited time offers.”
As Zelvin advises, “Really do think, be more skeptical. You don’t have to be afraid, you just have to be more critical.”
