With Christmas around the corner, many Canadians are carefully planning their holiday spending amidst financial pressures. A recent Ipsos poll revealed that 40% of Canadians are cutting back on holiday shopping this year. However, a federal tax holiday on certain items offers a golden opportunity to save, even as the countdown to Christmas continues.

Here’s how to maximize your savings and celebrate a joyful holiday season without breaking the bank.

1. Take Full Advantage of Canada’s Tax Holiday

The government’s two-month tax holiday, which began in early December, allows Canadians to save on a variety of items like toys, electronics, and certain household goods. If you haven’t finished your holiday shopping yet, there’s still time to benefit from this limited-time opportunity.

How to Save More:

• Focus on items covered by the tax break—perfect for last-minute gifts or practical purchases.
• Combine the tax holiday with ongoing December sales for even greater savings.
• Check eligibility carefully to make sure you’re maximizing your benefits.

2. Set a Last-Minute Budget

As the Ipsos poll highlights, 47% of Canadians are budgeting more carefully this year, and for good reason. With inflation and rising costs affecting many households, setting a clear spending limit for your remaining holiday shopping can help avoid financial stress.

Pro Tip: Allocate specific amounts for each person on your gift list and prioritize essentials over extras.

3. Focus on Meaningful, Affordable Gifts

Instead of expensive items, consider thoughtful yet budget-friendly presents. Nearly 60% of Canadians report they can’t spare extra money on gifts this year, so simplicity and sentimentality go a long way. Personalized ornaments, framed photos, or handwritten letters can make meaningful, cherished gifts.

4. Use Cashback and Loyalty Rewards

While time is running short, you can still take advantage of cashback programs and loyalty points for your remaining shopping. Many credit cards and retailers offer rewards that can help you offset costs, even on purchases made during the tax holiday.

5. Consider Experience-Based Gifts

If you’re struggling to find a physical gift, experience-based options like subscriptions, cooking classes, or family outings are excellent alternatives. These create lasting memories and can often be more budget-friendly than traditional presents.

6. DIY and Last-Minute Crafts

For those feeling the crunch of time and money, DIY gifts can be a lifesaver. Create something personal, like a batch of cookies, homemade candles, or a scrapbook. These gifts are thoughtful, cost-effective, and perfect for adding a personal touch in the final days before Christmas.

7. Avoid Credit Card Debt

The Ipsos poll revealed that 43% of Canadians are worried about paying off holiday credit card debt this season. To keep finances in check:

• Use cash or debit for any last-minute purchases.
• If using credit, ensure you have a clear plan to pay off balances quickly in the new year.

8. Shop Local for Quick Solutions

With Christmas just days away, shopping local can save you time and money. Many small businesses have unique gifts and holiday specials, and you’ll avoid shipping delays while supporting your community.

9. Focus on Holiday Essentials

The federal tax holiday isn’t just for gifts—it’s a great time to stock up on essentials for your holiday celebrations. Save on items like kitchen gadgets, festive decorations, and even everyday necessities while the tax break is in effect.

10. Celebrate the Spirit of the Season

Amid financial challenges, it’s important to remember that the holidays are about togetherness and gratitude. Simple traditions like watching a holiday movie, baking cookies with loved ones, or enjoying a walk to see neighborhood lights can bring just as much joy as unwrapping presents.

The Bottom Line: Make Your Holidays Merry and Budget-Friendly

Even with financial pressures, the federal tax holiday provides an excellent opportunity for Canadians to save this season. By shopping smartly, focusing on meaningful gifts, and keeping an eye on your budget, you can enjoy the holidays without unnecessary stress.

Looking for more ways to save and invest wisely? Whether it’s holiday budgeting tips or real estate advice, our team is here to help. Explore our blog or contact us for expert insights today!