Dec 17, 2025
Canadian parents are heading into the holiday season with tighter budgets and higher expectations — and many are leaning on grandparents for help.
New survey data shows (1) family budgets are stretched thinner than ever, with rising everyday costs colliding with emotional expectations to “make it special” for kids. For many households, that pressure is now spilling over into savings, debt and quiet help from grandparents.
According to the Interac survey, one in five parents (21%) expect grandparents to contribute to holiday costs this year, while a third say grandparents now spend more on gifts for their kids than they do themselves (2).
At the same time, a separate survey released by RBC paints a sobering national picture: 60% of parents say their household budget has never been stretched so thin, and 66% worry about covering basic family costs — even before holiday spending begins (3).
“Interac survey and transaction data point to a clear pattern: Canadians are approaching the holidays with a heightened sense of caution on spending,” explained Chris Lee, head of Payments at Interac, in a statement (4).
The pressure is widespread — and deeply emotional
This isn’t just about inflation or higher grocery bills. It’s about expectations — many of them internal.
Against that backdrop, grandparents are becoming an increasingly important source of support. Parents surveyed by Interac say emotional pressure, not social pressure, is the biggest driver of overspending, with 56% striving to “make the holidays feel special.” Nearly half (47%) say they feel compelled to give their children the experiences they never had growing up.
How Canadian parents are feeling
For many, costs rise as their children get older, with parents identifying the teenage years as the most financially demanding, with kids aged six to nine close behind. At the same time, Interac transaction data forecasts that December 19 will be the busiest shopping day of the year, with 24.8 million Interac Debit purchases expected — most at grocery stores, discount retailers and fast-food restaurants. Nearly half (45%) of parents plan to spend under $500 on gifts this year, while 28% expect to spend $1,000 or more.
For many parents, strained budgets didn't happen overnight, but were exasperated by a number of factors. As a result, many parents report feeling similar negative emotions going into the holiday season, including:
- 72% were surprised by how much child-related costs rose in the past year
- 56% say their budget is too tight to afford what they want for their kids
- 45% feel pressured to buy more than they can afford
- 67% say they have — or would — sacrifice their own financial future for their children
- 33% have taken on debt to cover family expenses
For many parents, the result is a constant sense of falling behind — even when they’re doing everything “right.”
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RBC’s poll shows the biggest cost increases aren’t luxuries — they’re on everyday basics. The fastest budget eaters, according to Canadian families, includes:
- Everyday essentials (food, clothing): 85%
- Extracurricular activities (sports, arts, camps): 60%
Add in holiday meals, gifts, hosting costs and travel, and December quickly becomes the most financially demanding month of the year.
The breakdown of the hostess with the mostest
Both surveys point to a widening gap between what families want the holidays to look like and what they can realistically afford, especially when it comes to social gatherings that are customary during this time of year.
Nearly half of parents (46%) feel compelled to “go above and beyond” when having guests over, according to Interac, while 34% have scaled back due to the cost. And despite tight budgets, more than half find it awkward to ask guests to share expenses.
“As we approach peak shopping season, household budgets will be tested by high prices and high expectations,” Lee said.
Actions parents are taking
To offset higher costs and not eat into holiday budgest, many parents are already making trade-offs, often quietly (5):
- 53% delaying or cancelling major purchases
- 46% scaling back long-term investments
- 41% dipping into savings or emergency funds
- 33% taking on debt
- 30% taking on extra work or a second job
While these moves can offer short-term relief, financial planners warn they can quietly undermine long-term stability — especially when borrowing becomes routine.
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The data is clear — the pressure is real. But there are ways to regain control without adding guilt or deprivation.
1. Set a “no-regret” holiday number
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Decide in advance what you can spend without borrowing or dipping into emergency savings. That number is your guardrail — not a failure.
2. Reframe “special” — and say it out loud
Kids don’t measure holidays in dollars. Experiences, traditions and time matter more than volume. Naming this — especially with teens — reduces pressure on everyone.
3. Coordinate with grandparents early
If grandparents want to help, talk openly about expectations. Decide:
- Who’s buying what
- Whether help replaces, not adds to, spending
- How to avoid duplication and overspending
This preserves generosity without guilt.
4. Protect future-you first
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If holiday spending means carrying a credit card balance, skipping RRSP or TFSA contributions, or draining emergency savings…it’s a sign to scale back. Your financial future is part of your family’s security. Don't overspend now only to suffer later.
5. Plan for next year — not January
The biggest stress often comes from “extras” that sneak up:
- Camps
- Sports
- School trips
Start a small monthly sinking fund in January — even $25 to $50 a month can prevent next year’s scramble.
Bottom line
Canadian parents aren’t failing — they’re facing a cost environment that’s genuinely harder than it’s been in years.
The surveys show something important: this stress is shared, not personal. Recognizing that can be the first step toward making calmer, more sustainable choices — ones that protect both your kids’ happiness and your financial future.
You don’t need to do more. You need to do what’s sustainable.
— with files from Romana King
Article sources
RBC Royal Bank (1, 2, 3, 4, 5)
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
