Getting Ready for Holiday Shopping
In just 60 days, Canadians will be celebrating the holidays with family and friends, but this year will be very different compared to years of past. The COVID-19 virus has impacted every one of us, and as we face a second wave many of us can expect to forego the in-person parties and instead have virtual gatherings with loved ones. The 2020 Deloitte Holiday Retail Outlook survey shows that 51% of Canadians will avoid entertaining altogether and only 26% are planning to have in-home entertaining over the holidays.
Canadians love to spend on one another, especially during the holidays. However, with some of us experiencing a reduction in income or relying on CERB (transitioning to EI), we should be looking for cost savings opportunities and financially responsible habits with uncertainty ahead.
A survey completed by Canada Post shows that 32% are planning on spending less compared to last year, while 61% are planning on spending the same and 7% reported on planning to spend more this holiday season. According to the 2020 Holiday Retail Outlook report from Deloitte, Canadians will be cutting back on spending with respect to gifts/gift cards and alcohol for entertainment, along with a significant decrease in travel costs $104 in 2020 compared to $348 in 2019). While there are saving plans described in this outlook, it is nice to note that giving to charities has an increased estimated spending from $87 in 2019 to $158 in 2020.
If you are thinking – How can I limit my spending over the holiday season? Here are a few tips to ensure that you spend within your means.
1) Create a list and detail how much you plan on spending per person.
Feel free to adjust the list and cost per person to accommodate your budget.
2) Reduce, Reuse, Recycle: decrease cost and waste by using alternative wrapping materials.
Read the article, Eco-Friendly Gift Wrapping Ideas, for great ways to save!
Keep track of additional expenses like wrapping paper, cards, etc. and ensure to subtract this cost from what you had expected to spend over the holiday season to ensure you stay within budget.
3) Start shopping early and look for sales.
Black Friday, Cyber Monday and other sales leading up to the holiday season can help you save.
4) Look for alternative ways of gift gifting for those on your list.
Use points from your credit card or loyalty programs.
Hand made gifts have a personal touch that can mean a lot more than a store-bought item.
5) Lower overall costs by limiting who you spend for.
If you have a large list of loved ones you need to buy for, opt-in for a Secret Santa and limit the overall cost by buying for just one person
If you plan to shift to online shopping this holiday season, which 48% of Canadians are, keep a look out for sales starting earlier than prior years as retailers are trying to get ahead of the potential supply-chain demands. Shopping online might be new for some, so here are a few items to keep an eye out for if you are shopping online.
Cost of shipping (which should factor into your overall budget)
Delivery date of the gift
Research the return policy – Is it easy to return or exchange the gift? How many days do they have to return?
As the weather continues to change and cold and flu season is amongst us, we ask all those who are venturing to malls for their holiday shopping to practice appropriate physical distancing, wear face masks and stay safe. We hope everyone takes care of one another during this holiday season!
Chris Santos, CFP
Group Retirement Consultant