BMO Survey: Three-in-Five Canadians Adjust Holiday Spending Plans Amid Tariff Concerns

• Among the 61% who have adjusted their holiday shopping plans due to tariff concerns, one quarter (25%) started holiday shopping earlier this year to avoid potential price increases as a result of tariffs. 
• 41% will cut back on spending this holiday season.
• Canadians plan on spending an average of $2,310 this holiday season.

TORONTO, Nov. 14, 2025 /CNW/ - The latest BMO Real Financial Progress Index reveals 61% of Canadians are changing their holiday spending plans this year in anticipation of rising costs caused by tariffs.

• 37% are trying to buy gifts minimally affected by tariffs, including purchasing goods made in Canada.
• 25% started their holiday shopping earlier to avoid potential price increases.
• 15% are budgeting to spend more on gifts in anticipation of higher prices.

"In the wake of recent tariff increases, rising unemployment, and an upturn in inflation, it's not surprising that Canadian consumers are feeling a sense of trepidation heading into the holiday season," said Sal Guatieri, Senior Economist, BMO. "Though not elevated, annual CPI inflation has picked up to 2.4% in September after remaining below 2% in the previous five months, partly due to a 3.8% rise in food costs. By weakening the economy, the trade war has lifted the unemployment rate, undermining consumer confidence and income growth."

Additional findings from the BMO survey on Canadians' holiday spending plans reveal:

The Holiday Price Tag:

• • Canadians plan to spend an average of $2,310 this holiday season, including travel costs like flights, tickets and accommodations ($545), food and groceries ($517), dining out ($184), entertaining ($178), electronics ($163), clothing ($160), alcohol ($119), charitable giving ($116), toys and games ($95), holiday decorations ($57) and other holiday expenses ($175).
• Unwrapping Spending: 
  • Two in five (41%) plan to cut back on spending amid concerns about the rising cost of living, while almost as many (39%) expect to spend the same but get fewer items. Canadians plan to cut spending most on holiday decorations (46%), travel (43%), dining out (42%), toys and games (40%), alcohol (38%), clothing (36%) and entertaining (36%). However, 25% plan on spending more on food and groceries this holiday season compared to last year.
  • With concerns about the rising cost of living top of mind, Canadians are adjusting their shopping habits including shopping for sale and/or clearance items (42%), buying less expensive gifts (38%), making fewer big purchases (31%), shopping at more affordable brands and/or discount retailers (32%) and spreading out their purchases over several weeks and months (27%).
  • Nearly half (46%) say holiday sales and discounts cause them to spend more or purchase more gifts than they originally intended.
• The Cost of Holiday Cheer: 
  • While half (50%) of Canadians say thinking about holiday spending causes financial stress, over a third (35%) feel pressured to keep up with others' spending even if they cannot afford it.
  • Over a third (36%) knowingly sacrifice their long-term savings to afford their holiday spending plans.
  • 35% have taken on extra work to pay for their holiday spending, with Gen Z (55%) and Millennials (46%) being the most likely to do so.
  • Canadians believe it will take them an average of more than two months to pay off their holiday bills. However, 9% are not sure when or if they will be able to pay off these bills.
• Making a List and Checking it Twice
  • One quarter (25%) plan on reducing the number of people on their holiday gift list.
  • Nearly a third (31%) are not confident they will be able to afford every item on their holiday gift list.
• Stocking Up on Savings:
  • Over two thirds (68%) are trying harder to set and stick to a budget for their holiday spending compared to previous years. The figure increases to 75% among those more concerned about inflation or a possible economic recession.
  • Nearly two in five (38%) have reduced their spending on other gifts throughout the year such as birthdays, anniversaries, etc. to splurge on holiday gifts.  
  • 17% have saved throughout the year to be able to afford their holiday spending plans.

"With concerns about the rising cost of living and economic uncertainty shaping holiday plans, Canadians are showing resilience by budgeting earlier, shopping mindfully, and prioritizing what matters most," said Anthony (Tony) Tintinalli, Head, Specialized Sales, BMO. "By starting early, setting a budget, focusing on meaningful purchases and working with an advisor to develop a personalized plan, Canadians can celebrate the season feeling more empowered to take control of their finances and staying on track towards making real financial progress."

Holiday Cheer Without Financial Fear: Tips for Making Real Financial Progress

BMO offers tips to help Canadians stay on track towards their financial goals and make real financial progress this holiday season:

• Define a Holiday Budget Around Goals: Affordability comes first. Canadians can align their holiday spending plan with long-term goals including retirement, an emergency fund or paying down debt.
• Shop Smart and Early: Take advantage of early sales and spread purchases over time to avoid last-minute splurges.
• Consider Non-Monetary Gifts: Homemade gifts, shared experiences or charitable donations can be meaningful without straining budgets.
• Track Spending in Real Time: Take advantage of budgeting apps or spreadsheets to monitor every dollar. Staying aware can help support making informed choices and prevent overspending.
• Build a Holiday Savings Habit: For next year, start saving early by automating a monthly transfer to a holiday fund. This can help make future spending stress-free while keeping financial progress on track.
• Plan for Post-Holiday Recovery: Set aside a small amount of funds as a holiday buffer for January expenses. This can help prepare for bill repayments and reduce potential stress.
• Watch for Emerging Holiday Shopping Related Fraud and Scams: Scammers are using AI to create fake retailer websites, phishing emails, and deepfake videos that impersonate trusted brands or influencers. They may also embed malicious links in QR codes found in ads, emails, or packaging.
• Tips to Help Stay Safe Include:
  • Do not click on links in emails, texts or QR codes, and instead go directly to retailer websites.
  • Be skeptical of urgency as "limited time offers" are a common scam tactic. Research unfamiliar sellers before buying, especially on social platforms.
  • To learn more tips, please visit BMO.com/Security.
• Seek Professional Advice: Do not wait to seek help. Working with a professional expert and meeting with them regularly can help Canadians and their loved ones create and maintain a financial plan that reflects their financial goals, sources of income and cash flow, risk appetite and time horizons, and adjust these plans as new goals emerge.

Clients can build financial literacy, monitor financial plans, and reach financial goals through BMO's innovative digital tools and resources:

• BMO My Financial Progress : Available through BMO's Mobile Banking app and Online Banking, this innovative, digital goal planning platform helps clients create personalized and adaptive long-term plans, gain comprehensive insights into their finances and access personalized strategies to help them reach their goals.
• BMO Insights : Clients get help saving more, monitoring spending and account values and spotting unusual activity with 25 BMO Insights that provide customers free, quick and personalized views of their daily spending to help them make informed decisions. Popular online insights include:
  • CashTrack: Using artificial intelligence, these insights monitor customers' cash flows and let them know if they will run out of money in the next seven days.
  • Spend Categorization: These insights notify customers when there has been a significant increase in a specific spending category or if a free trial has expired.
• BMO Credit Coach : To help clients better understand, monitor and build their credit history, Credit Coach's intuitive platform helps clients manage their credit health with real-time alerts, personalized guidance and a dynamic credit score simulator. Available through BMO's Mobile Banking app and Online Banking, clients can track credit utilization trends, learn about score factors and explore how financial decisions such as taking out a car loan, opening a new credit card or consistently paying bills on time would affect their score.
• BMO Savings Amplifier Account : To help make saving easy and automatic, BMO's Savings Amplifier Account offers no monthly fees, a competitive interest rate, and unlimited no-fee transfers to other BMO accounts. In addition, its digital Savings Goals feature enables clients to set, track and manage their financial goals.
• BMO PaySmart : This is a flexible tool that helps clients turn credit card purchases into equal monthly payments, enhancing their ability to manage cash flow and gain better understanding of their spending. Since its launch, PaySmart has empowered customers with clear insights into their spending habits and progress to achieve their goals.

To learn more about how BMO can help clients make financial progress, visit www.bmo.com/main/personal.

About the BMO Real Financial Progress Index

Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The index aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.

The research detailed in this document was conducted by Ipsos in Canada from September 3 to October 11, 2025. A sample of n=2,500 adults ages 18+ in Canada were collected. Quotas and weighting were used to ensure the composition of the samples reflects that of the Canadian population according to census parameters. The surveys have a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all Canadian adults 18+ been surveyed.

About BMO Financial Group

BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

SOURCE BMO Financial Group

Media Contact: Anke Suwanda, Toronto, [e-mail], [phone]