MONTREAL – Young Canadians feeling the brunt of inflation want to splurge on gifts for loved ones, but are instead cutting back on other vacation spending.
Despite the high cost of living, retail experts say younger generations are more likely to splurge on gifts this year.
“They really look forward to pleasing their loved ones and to pleasing themselves,” said Suzana Colic, retail consultant at Accenture Canada.
To accommodate these additional expenses, you will likely need to revise your already tight budgets.
According to Colic, restaurants, entertainment and subscription services are the first industries where young Canadians may want to cut back on spending this holiday season.
Electricity bills are another way to cut expenses, he added. In addition to turning off unnecessary lights and unplugging unused electronic devices, he tries to limit non-essential seasonal energy use by reducing the number of decorative holiday lights.
« [Young Canadians can be] strategically and consciously to spend on some of the non-essentials, to create the space to spend on loved ones for the upcoming holiday season,” said Colic.
Another way to save money is to use online marketplaces, like Vinted or Depop, to buy and sell clothes, accessories and homewares at a discount, she added.
And then there’s the other side of the equation.
In addition to cutting expenses, Colic said young people can offer to work longer hours or take up side jobs, like babysitting or walking the dog, to earn some extra cash.
Another way to save money is to set realistic financial expectations when vacationing with friends and family.
Open and honest conversations about finances beforehand help.
In a report on vacation spending, PayPal found that people aged 18 to 24 were three times more likely to share the bill for vacation spending than Canadians aged 65 and older .
By pooling the money, you can buy the most expensive gift for a loved one or treat yourself to a party at a discount.
The data, which comes from 2,000 Canadians surveyed in the last week of October, also shows that 94 percent of Gen Zers feel comfortable asking family and friends for money.
“It shows they don’t find conversations about money embarrassing,” said Malini Mitra, a spokesperson for PayPal.
“This generation is becoming more transparent and honest with their finances and there are offers of mutual support when they can. »
Mitra said older generations have a lot to learn from normalizing discussions about sharing money and supporting each other through tough times.
“We can definitely come out of these situations stronger together.”
This EssonneInfo report was first published on November 21, 2022.
