A new survey reveals 65% of Canadians are planning to stay on budget by using cash or debit to pay for the majority of their holiday spending this year.
The CIBC poll conducted by Harris/Decima also revealed the 87% of respondents are planning to keep their holiday shopping expenses the same or lower versus last year.
As to how Canadians plan to pay for the majority of their holiday shopping this year, the poll found that 36% plan to use their debit card; 29% plan to use cash; and 31% plan to use their credit card.
“While Canadians say they are budget conscious this year, nearly 30% of respondents admit they find it difficult to stick to their regular savings plan during the holiday season. Keeping on top of holiday spending is critical to staying on track towards your financial goals and starting the New Year with your savings plan in good shape,” says Colette Delaney, senior vice president, mortgage, lending, insurance and deposit products, CIBC.
While cash and debit combined were favoured by Canadians for holiday spending, a number of Canadians will be using their credit card to pay for the majority of their holiday shopping (31%). The good news is most Canadians planning to pay with credit also have a plan to quickly pay off their holiday spending in full (76%) while only 23% of Canadians using credit said they will pay their balance off over time.