CANADIANS PLAN TO BE THRIFTY OVER CHRISTMAS
By Adnews Staff
Santa's coming to town next week, but his bag of goodies will be a little lighter than usual, according to a poll for the Canadian Imperial Bank of Commerce. Eighty-five per cent of Canadians says they will spend the same or less money on holiday gifts than they did last year. Almost half of consumers will spend $500 or less on Christmas presents. On average, Canadians plan to spend $873 this year on friends and family. Consumers in Atlantic Canada are most likely to spend less on Christmas this year, followed by Alberta then British Columbia. Canadians in the prairie provinces, Ontario and Quebec are somewhat less likely to scrimp on holiday spending this year. Financial gifts are becoming more popular, with 42% of respondents saying they have given gifts such as cash, bonds or mutual funds. Forty-four per cent said they would probably or definitely give a financial gift to a child and 55% of those consumers expect that money to be saved for the child's education or for a rainy day. Only 8% would give a child a cash gift with no strings attached. Forty-three per cent of parents expect a child to pay for gifts from their savings, while 29% give money to their children to purchase gifts. Another 13% give money to their children and expect the children to contribute cash as well. Forty-two per cent of parents give their children an average of $45 per gift. Canadians are also optimistic about the upcoming year. Forty two per cent of the respondents said they think the stock market will strengthen, while 28% think it will drop over the coming year. One in three Canadians expect to change their investment and savings strategy for 1999 by spending less, saving more and preparing a financial plan. Forty-two per cent of Canadians expect to be better off financially at the end of 1999. When asked whether they would prefer a cash gift of $5,000 or a $5,000 RRSP, 60% chose the RRSP. The survey was conducted by Compas Inc. It polled 1,007 Canadian aged 18 and over.