Interac survey shows Canadian parents face holiday spending stress and grandparents are stepping up

Half of Canadian parents (49 per cent) say last year's budget won't stretch far enough this holiday season due to rising costs

TORONTO, Dec. 10, 2025 /CNW/ - The pressure is on for parents this holiday season. Three-quarters of Canadian parents recently surveyed (76 per cent) say creating a magical holiday for their children is a top priority - but higher prices are turning wonder into worry. A new Interac survey reveals two-thirds (66 per cent) of Canadian parents say rising costs are making it harder to manage their holiday spending, and half (52 per cent) are worried about overspending this holiday season. So much so, grandparents are stepping up, with one in five parents (21 per cent) relying on them for holiday support. A third of parents (33 per cent) say grandparents spend more on gifts for the kids than they do themselves.

Interac transaction data forecasts that December 19, 2025, will be the busiest shopping day of the year, with 24.8 million Interac Debit purchases predicted. The majority of the transaction volumes are expected to take place at fast food restaurants, grocery stores and discount stores. As parents head to the shops this holiday season, more than four in 10 (45 per cent) plan to spend a total of under $500 on gifts, one in four (25 per cent) plan to spend $500 - $999, and nearly three in 10 (28 per cent) plan to spend $1,000 or more.

"Interac survey and transaction data point to a clear pattern: Canadians are approaching the holidays with a heightened sense of caution on spending," said Chris Lee, Head, Payments at Interac. "As we approach peak shopping season, household budgets will be tested by high prices and high expectations. Using Interac Debit can help Canadians manage their finances by using their own money- keeping holiday magic alive and providing a sense of financial confidence and security as we approach the festive season."

Most parents say the pressure to overspend comes from within, as they strive to make the holidays feel special (56 per cent). Nearly half (47 per cent) are driven by a desire to give their children what they never had. Other factors driving parents to go over budget include keeping up with family expectations (37 per cent), making the most of retail promotions (25 per cent) and trying to recreate the holiday ideal seen on social platforms (15 per cent).

Key findings from the Interac holiday spending snapshot include:

Older Kids, Big Budgets: As kids grow, the pressure on parents increases. Parents say the teenage years (age 13-17) are the most demanding for holiday spending, with kids aged six to nine following in second place. Parents of toddlers under two feel the least spending pressure.  

Lingering Regrets: 74 per cent of parents have felt financial strain after overspending for the holidays in the past; nearly two in five (40 per cent) experience this every year. Recovery takes weeks for some, but 44 per cent need until the spring, and 12 per cent feel the impact most of the year. Among parents who reflected on their holiday spending last January, 56 per cent felt stressed, overextended or remorseful.

AI Assistance: Only about a fifth of parents (23 per cent) say they wish AI could handle their shopping for them. As agentic commerce plays an increasing role in Canada, four in 10 (40 per cent) would use an AI tool if it could identify the best day or time to shop for the lowest prices.

Hosting Pressure: Nearly half (46 per cent) feel pressure to go above and beyond when hosting; three in 10 (34 per cent) have scaled back due to the cost of having people over. Nearly six in 10 (58 per cent) find it awkward to ask guests to share expenses.

About the Interac survey

Interac commissioned Burson to survey 1,500 adult residents across Canada between November 19 and 24, 2025. The sample included 377 Canadian parents. The sample was randomly drawn from Leger's web panel of potential respondents and weighted by age, gender and region to reflect Canada's population distribution according to 2021 Census data. An associated margin of error for a randomly selected sample of n=1,500 would be ±2.5%, 19 times out of 20.

About Interac Corp.

Interac empowers Canadians to transact digitally with confidence by providing payment and value exchange services. In helping to develop the future of money movement and verification in Canada, security is the core of everything we do. Through our privacy, fraud mitigation, governance, and verification and authentication services, we help keep Canadian customers safe and secure when transacting. With nearly 300 financial institutions connected to our network, Canadians choose Interac products over 20 million times a day on average to exchange money. Interac champions workplace culture and corporate citizenship based on the principles of responsibility, diversity, and inclusion. We are proud to be one of Canada's leading and most trusted financial brands.

For more information on how Canadians can spend with confidence this holiday season, visit our website.

Interac is a registered trademark of Interac Corp.

SOURCE Interac Corp.

For further information: Interac Corp., [email protected]