Smaller Budgets with Bigger Impact: Canadians Plan to Slash Holiday Spending, But Mostly Buying Local: TD Survey

Smaller Budgets with Bigger Impact: Canadians Plan to Slash Holiday Spending, But Mostly Buying Local: TD Survey

While more than a third of Canadians surveyed are cutting back, 57% are putting at least half their holiday budget toward small businesses

TORONTO, Dec. 8, 2025 /CNW/ - The countdown to the holidays is on, but this year, Canadians are reconsidering their festive spending habits. According to a new TD survey, more than one in three Canadians (36%) intend to cut back on holiday expenses this season, up significantly from 32% last year. In addition, 60% of those cutting back say that groceries and household essentials instead will account for at least half of their total spending during the holidays.

Holiday Squeeze: Canadians Get Savvy
The survey reveals that Canadians appear to be rethinking traditions and getting creative with their celebrations. Among those cutting back, two-thirds (67%) blame the higher cost of living, but 29% are prioritizing saving. Canadians are adopting a range of strategies to keep spending in check:

• 46% are cutting back on gifts for family,
• 44% are dialing down social spending, and
• 38% are scaling back on gifts for friends.

But even the best-laid plans can go awry. A staggering 77% admit they're vulnerable to overspending, lured by flash sales, pressured to give meaningful gifts or swept up in the quest to make the holidays magical for their kids.

While only one in four Canadians (24%) have enough extra income to cover holiday expenses, others are getting resourceful by having dedicated savings for this time of year (26%), cashing in loyalty points (24%) or even taking on a side hustle (11%).

Younger Canadians appear to be feeling brighter about their holiday budgets – and are boosting them accordingly. One in four Gen Z and Millennials (25% and 24% respectively) are planning to spend more this holiday season versus 9% of Gen X and 8% of Boomers.

"The holidays may feel different this year, but Canadians are showing that festive spirit isn't about spending big; it's about spending smart," said Joe Moghaziel, Vice President, Everyday Advice Journey, TD. "From creative gift-giving to leveraging loyalty points, the survey shows a shift toward intentional choices that keep celebrations meaningful without adding financial strain."

Local Love: Small Businesses Shine Bright
Despite tighter wallets, Canadians are rallying behind local retailers. Eighty-one percent plan to support Canadian businesses this holiday season, with 57% of those shoppers putting at least half their holiday budget toward buying from local small businesses. Gen Z is leading the way, with 71% dedicating at least half their budget to local shops, compared to just 46% of Boomers.

"Every dollar spent at a local small business is a vote for your community," said Julia Kelly, Vice President, Small Business Banking and Segment Strategy, TD. "This season, look for ways to support local retailers and artisans—whether it's shopping at a neighbourhood market or choosing locally made gifts. Small changes in spending habits can have a big impact, both for your wallet and for the businesses that help to make your community unique."

Additional resources for holiday shoppers:
TD offers a number of tools and resources to help Canadians and TD clients budget and track their spending this holiday season:

• Keep your spending on track: Tracking your spending habits can help you see where your money is really going during the holidays. As a TD customer, you can take advantage of tools like the TD MySpend app that lets you see your TD deposit and credit card account information in real time.
• Build a budget that's right for you: Setting a budget can help you keep your spending in check during the holidays. TD Personal Bankers can offer financial advice and help customers plan their finances around this busy time of year.
• Using TD Goal Builder, where a TD Personal Banker can provide personalized investment advice to help customers work toward their financial goals.
• The TD Advice Hub which has information and articles available on a variety of financial topics and investing

About the TD Survey
This survey was conducted by Harris Poll for TD from October 23rd to October 27th, 2025, with a nationally representative sample of 1,516 Canadian adults. Results were weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. Margin of error: ±2.5%, 19 times out of 20.

About TD Bank Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank^®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on October 31, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.

SOURCE TD Bank Group