It is always a trade-off between our ability to spend and the desire to spend, writes Peter Watson.
This year, there are many reasons to spend less. Canadians feel pressure from the United States over repeated suggestions that we would become the 51st state, and over the damage to our economy caused by tariffs.
That would be a reason to spend less.
On the other side of the decision to spend or not to spend is the spirit of Christmas. This is the time of year to appreciate friends and family, which encourages us to spend on Christmas gifts and activities.
Holiday spending is expected to increase by three per cent this year despite the fact that almost half of consumers think the economy will weaken next year. Smart spending will be done by Canadians shopping for the best deals.
The Deloitte report shows shopping will start earlier this year, and a significant amount of that shopping will be done on Black Friday when retailers significantly reduce prices.
Many shoppers will turn to artificial intelligence for holiday shopping ideas, and online shopping will be widely used.
The holiday season is a special time of year. A mix of personal priorities on how you spend your money and how you plan to navigate your household finances. An encouragement is to do what many others do: shop carefully and get good value from your spending.
Financial considerations aside, we hope you enjoy the Christmas season this year.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com.
