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A Canadian mom celebrating Christmas with her child, knowing that money was tight this year.

The Get

Budgeting for the holidays when money’s tight

For this week’s top story, we interviewed three Canadian women about how they are budgeting for the holidays this year.

By Cailynn Klingbeil

This year’s holiday season is unwrapping against a complicated backdrop. Rising living costs and wages that haven’t kept pace continue to stretch household budgets. At the same time, ongoing trade tensions between Canada and the United States are adding to economic uncertainty, pushing prices to rise. It’s no surprise consumer confidence—a measure of Canadians’ mood around the economy—remains in negative territory. All this is shaping how people plan to approach holiday giving, considering how much money they earn and have on hand.

A survey of The Get newsletter readers and followers reflects that caution. Many respondents said they’ll spend less on the holidays this year compared to last (43%). A smaller group (16%) plans to spend more, while 30% expect to spend about the same, and 11% remain unsure. Budgets vary widely: 16% of respondents don’t plan to spend a dollar this year, 32% expect to stay under $500, 25% will land somewhere between $501 and $1,000, and 27% anticipate going over $1,000.

During the holidays, that pressure can turn into a careful balancing act between giving generously and sticking to a tight budget. And, single-income households led by women, who often face a gender pay gap, tend to feel the squeeze more acutely. To better understand how some Canadians are navigating the season, three women in different life stages shared their holiday plans.

Elle, 23, early career

Elle from Toronto is heading into Christmas with a steadier income but still a careful budget. She’s six months into a social-media internship, earning $23 an hour for 37.5 hours a week, with no benefits and limited paid time off. The role runs until the end of December, though she hopes it may become permanent in the new year. “The fact that I have a solid income coming in right now definitely makes me feel better about buying gifts and being generous,” she says.

For the gift exchanges, Elle, who lives at home with her family, is budgeting $50 each for her two sisters and $100 each for her parents. This year, she and her cousins agreed to forgo gifts in favour of a shared meal. “As we get older, there’s just not as much time to see each other,” she says. “So, instead of buying each other stuff, we’ll do a lunch.”

Elle is also pitching in with family members seeing a Sound of Music performance with her grandmother—a gift she’s especially excited about. “It’s a night together. We all go to dinner and enjoy the show,” she says. In total, she plans to spend about $450, an amount she’ll cover by dipping into her savings. A deal-hunter, Elle says Black Friday is her favourite time to shop and she’s always looking for discount codes. “I try to make the most of my money,” she says.

Melissa, 31, new mom

Melissa, mom to a daughter who just turned one, is currently on maternity leave. Until recently, Melissa was receiving Employment Insurance (EI) and an employer top-up worth about 80% of her usual income, but the $1,300 top-up ended after a year. She’s now receiving $750 from EI every two weeks and plans to return to work early in the new year.

Melissa, living in Toronto, is approaching Christmas with a clear plan. “I try to spend around $50 per child in our life. We have nieces and nephews and a bunch of my friends have little ones, too.” With 15 kids to shop for, she’s budgeted $750, about the same as last year. She’s using credit to help manage this budget.

A self-described planner, Melissa starts shopping in October to avoid last-minute stress. “I hit all the big Prime Days and Black Friday deals,” she says. This year, she’s excited to give her eight-year-old niece the Summer Fridays’ Sephora set she asked for. “How she knows what that is, I’m not sure,” Melissa adds, with a laugh. She’s also picked out Lilo & Stitch gifts she knows will land well for the kiddos, and for her own little one, she’s thrilled she found a play kitchen on sale.

Vanessa, 44, mid-life

Vanessa and her husband moved to Calgary from Peru in August 2024, seeking a better quality of life for their two daughters. With her husband in school and Vanessa working part-time, the family is living on her $1,800 monthly income and savings from before the move.
She’s budgeted about $300 for gifts this year, including scooters for her kids, a small present for her husband, a gift for a close friend—and a treat for herself. She’ll pay for these gifts with her savings. She also hopes to add a few new decorations to make their home feel festive.

What she’s most looking forward to is seeing her daughters open their presents early on Christmas morning. “It’s a very special moment because I see my daughters happy with their gifts, and we’re all together,” she says.

While celebrating far from family in Peru, Vanessa is keeping favourite traditions alive. There will be a turkey dinner with a special rice dish, hot chocolate with panettone, and on New Year’s Eve, the tradition of eating 12 grapes at midnight and making a wish for each month ahead. “We also put lentils in our wallets and purses so we’ll have plenty of abundance throughout the year,” she says.

No matter your budget

Holiday budgets vary, but the focus is often the same: celebrating together. Canadians like Elle, Melissa and Vanessa show how careful planning, savvy shopping and thoughtful choices can stretch dollars without sacrificing the spirit of the season.

Cailynn Klingbeil is a freelance writer and editor based in Calgary.