Ok, we British Columbians overspent over the holidays.
And now, a little over a month into the new year, adjustments have to be made or have already been made.
In fact, according to a survey done by respected pollster Angus Reid for the online finance platform KOHO, 69% of British Columbians are making changes after a Christmas spending blitz amid strained economic times.
The Post-Holiday Reset Report characterizes it as British Columbians having to make deliberate cutbacks in order to make ends meet and not dive further into debt.
The top way we're cutting back -- 53% of us -- is by eating out less.
That doesn't bode well for the Dine Around restaurant promotion that's currently going on throughout the province and upcoming Valentine's weekend.
38% of British Columbians are delaying or cancelling clothing or personal purchases like haircuts, shoes, toiletries and cosmetics, streaming services like Netflix.
23% are postponing or cancelling travel and leisure spending on things like skiing, gym membership, movies, concerts, video games and-or hobbies.
21% are cutting back on groceries and other household essentials like heat, electricity and water consumption.
Amid all this doom and gloom, there's a glimmer of hope.
71% -- whether it's warranted or not -- feel confident about their finances after the holidays.
Since this all dates back to overspending on Christmas, Angus Reid and KOHO asked what drove holiday purchases over the top.
Apparently, it was more about social expectations around gift giving rather than poor planning that got British Columbians spending more than they would like to or could afford.
Gen Z, those aged 14 to 29, felt it most acutely with 49% overspending to buy gifts.
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85% of those who overspend over the holidays are not using credit to buy anything right now.
Over the holidays, use of 'pay later' plans and overdraft spiked 23% and 25%, respectively.
“The holidays show how tight household finances already are,” said Faye Lucas, head of consumer trust at KOHO.
“December put a year’s worth of financial pressure into a few weeks. This data shows that Canadians are making intentional decisions about their spending to catch up after that holiday bubble. With the average Canadian’s salary under $70,000, they likely feel like they can’t afford to make a mistake, which is exactly why KOHO builds tools to help people manage their money in real time.”
