Inflation has been a concern since the COVID-19 pandemic caused supply chain disruptions and increased demand for certain goods. As much as we thought it was temporary, it continues to affect consumers in many ways, including how they enjoy special events with their families.
The holidays are long gone, but many people are still dealing with the effects of their holiday spending. According to a new Ipsos poll, seven in 10 Canadians said inflation impacted their holiday shopping, and 57% had difficulty covering the cost of gifts.
This overspending continues to negatively impact their lives months later. Over a third of survey respondents said it would take them until April to recover financially.
The majority of holiday shoppers said inflation affected their spending, but parents with kids were hit the hardest. Over half of the parents surveyed said they blew their holiday spending budget by an average of $614.
It wasn’t just gifts that were hard to cover — parents actually spent the most on experiences with family and friends.
The problem with overspending is that it causes a ripple effect that can last long past the initial purchase. Holiday spending set many parents back, and 49% estimated it would take until April or later to get back on track.
The survey also asked respondents what they would do with an extra $5,000. 35% of all respondents said they would pay down debt, 31% said they would save the money, and 16% said they’d treat themselves with the funds.
As of January 2023, inflation is at 6.41% — down from a high of 9.06% last summer but still high enough that many consumers are feeling the pinch on their finances. Here are some strategies you can use to meet your daily needs despite inflation:
Inflation is slowly beginning to improve, but it’s still causing financial challenges for many consumers. The best way to deal with inflation is by budgeting and prioritizing your spending. By taking steps to track your expenses and cut your discretionary spending, you’ll be better able to protect your finances.
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Lauren is the Marketing Manager at Nationalbusinesscapital.com. She has 7 years of professional experience with a focus on small business marketing and finance. She previously worked as a senior business analyst for B2B SaaS, Sky IT Group. She has covered topics including, business financing, startups, retail, taxes & regulations, etc. Her work has been featured by USA Today, Google & Yahoo News. Lauren holds a B.A. from the Fashion Institute of Technology’s (FIT) School of Business.
