How Much to Spend on Christmas Gifts in Canada: Full Guide

Christmas gift giving brings joy and financial anxiety. You want to show love without breaking your budget or starting the new year in debt. Finding the right balance helps you celebrate meaningfully while staying financially healthy.

TL;DR:

• Canadians spent an average of $1,853 on the 2024 holiday season, with $519 going to gifts specifically
• Spend $50-$100 on immediate family (spouses, kids, parents), $25-$40 on extended family, and $10-$30 on co-workers or teachers
• Base your gift budget on discretionary income after bills and savings—not on what others spend
• Most Canadians overspend by $100-$500 during the holidays, creating January debt stress
• Thoughtful gifts matter more than expensive ones—set limits early and communicate them with family

How Much Do Canadians Typically Spend on Christmas Gifts?

Canadians usually plan to spend an average of $1,853 on Christmas gifts, travel, and entertainment during the 2024 holiday season. Christmas gifts accounted for about $519 of that total, though this varies widely by yearly income and family size (BMO).

The average person's holiday budget breaks down by category:

• Family: Canadians spend the most on immediate family members and close family members
• Friends: Moderate Christmas spending on close friends
• Co-workers and teachers: Smaller amounts, typically under $30
• Extended family: Mid-range spending depending on closeness

Regional differences matter too. Families in the Prairies and British Columbia spent more (averaging $2,188 and $2,126), while Quebec families budgeted just $1,474—the lowest in Canada (PwC Canada).

Income plays a huge role. Canadians earning over $60,000 planned to spend $1,773 on average, compared to just $919 for those earning under $60,000. People typically spend proportionally to their earnings.

Here's the reality: these are averages, not targets. What someone else spends doesn't dictate what's right for your financial situation. Your Christmas budget depends on your income, debt, number of recipients, and personal priorities.

How Do You Decide How Much to Spend on Christmas Gifts?

Start with your monthly budget—your income minus necessary expenses like rent, groceries, utilities, debt payments, and savings goals. Understanding your family finances helps determine how much wiggle room you have for holiday gifts.

Calculate how much of that discretionary income you can comfortably allocate to Christmas presents without cutting into savings or emergency funds. If you have $500 in discretionary income monthly and Christmas time is in December, maybe $300-$400 goes to the Christmas shopping budget while keeping a buffer room for other Christmas expenses.

Factor in everyone on your gift list. Count immediate family, extended family, friends, co-workers, teachers, and anyone else you typically buy gifts for. The more family members on your list, the less you can spend per person while staying in your total budget.

Consider your relationship with each recipient. You'll naturally spend more money on your spouse or kids than on your mail carrier or your child's teacher. That makes sense, and it's the appropriate amount based on closeness.

Balance generosity with financial responsibility. Showing love doesn't require expensive gifts. A thoughtful $30 gift with genuine consideration beats a rushed $100 purchase that stresses your budget. Don't feel guilty about spending less when that's what your financial situation allows.

Need help bridging the gap this year? Bree offers interest-free cash advances up to $500 with no credit check if unexpected costs push your budget.

How Much Should You Spend on Immediate Family?

Immediate family—spouses, partners, children, parents, and siblings—typically get the largest portion of your Christmas gifts budget.

Spouses and Partners

Most Canadian couples spend on christmas gifts $50-$150 on each other, with an average around $100. How much to spend on Christmas gifts for your partner depends on your combined finances and what you both agree makes sense. Many couples set mutual limits to avoid one person overspending.

Consider experiences instead of physical items. Concert tickets, restaurant gift certificate options, or weekend getaways often mean more than another sweater.

Children

Parents spend widely different amounts on kids—anywhere from $50 to $300+ per child. Deciding how much to spend on Christmas gifts per child involves key factors:

• Age: Teens often want pricier items than young kids
• Number of kids: More children mean lower per-child budgets for most families
• Your income: Spend proportionally to what you can afford

Experts suggest $75-$150 per child as reasonable for middle-income families. Quality matters more than quantity. Three meaningful gifts beat a pile of cheap items. Some families create gifts like homemade toys or crafts to save money while adding personal touches.

Parents

Adult children typically spend $50-$100 on their parents. Many parents prefer thoughtful gestures over expensive items—framed family photos, homemade items, or spending time together often resonate more than store-bought presents.

Siblings

Budget $30-$75 per sibling, depending on your relationship closeness and financial situation. Many families do Secret Santa or set mutual spending limits once siblings become adults with their own families. This helps everyone avoid overspending while keeping gift exchanges fun.

How Much Should You Spend on Extended Family and Friends?

Extended family and friends get smaller portions of most holiday budgets.

Aunts, Uncles, and Cousins

Spend $25-$40 on closer extended family members. For large extended family gatherings, suggest doing Secret Santa with a $30-$50 limit instead of buying gifts for everyone. This cuts costs dramatically while keeping gift exchanges fun.

Close Friends

Budget $25-$50 for close friends you exchange gifts with. Consider suggesting spending limits ahead of time so no one feels pressured to buy expensive gifts.

Smaller Meaningful Gestures

Not every relationship requires gifts. Holiday cards, homemade baked goods, or simply spending time together can express appreciation without straining budgets. Many people feel relieved when someone suggests skipping gift exchanges. The perfect gift is often just being present.

How Much Should You Spend on Co-Workers, Teachers, and Acquaintances?

These relationships call for thoughtful, modest spending during the Christmas season.

Workplace Gift Exchanges

Most office Secret Santa exchanges set $15-$30 limits. Stick to these limits—going over makes colleagues uncomfortable. Opt for fun, universal gifts like quality coffee, desk accessories, or gift certificate options to popular stores.

Teachers and Childcare Providers

Parents typically spend $10-$25 per teacher. Gift certificate options to coffee shops, bookstores, or general retailers work well. Consider group gifts from multiple families—pooling $10 per family creates a more substantial $50-$100 gift card.

Neighbours and Service Providers

Budget $10-$20 for neighbours, mail carriers, or other service providers you want to acknowledge during the holiday season. Homemade cookies, small gift baskets, or coffee gift certificate options show appreciation appropriately.

The key with these relationships: appropriateness matters more than cost. A thoughtful $15 gift feels better than an awkward $50 purchase that seems too personal. Find out how to borrow $50 instantly in Canada.

What If You Can't Afford to Buy Christmas Gifts?

Financial constraints during the holidays are completely normal. Many Canadians face this reality and need to avoid buying expensive Christmas presents.

Honest Communication

Talk to family and friends early. Most loved ones understand budget limitations and prefer honesty over watching you stress financially. Say something like: "I'm focusing on reducing debt this year, so I'm doing handmade gifts. I hope you understand."

Alternative Gift Ideas

Consider these meaningful, low-cost gift ideas:

• Homemade baked goods: Cookies, preserves, or bread
• Service coupons: Babysitting, snow shovelling, car washing, home repairs
• Spending time together: Plan activities like movie nights, hiking, or game nights
• Handcrafted items: Knitted scarves, photo albums, art you create yourself
• Heartfelt cards: Express appreciation through genuine words

Creating one gift at a time with love often means more than buying expensive store-bought gifts. Some of the best gifts are homemade.

When a Small Advance Helps

Sometimes $100-$200 makes the difference between no gifts and meaningful ones for your kids. Bree can help with interest-free cash advances up to $500 if a small amount of cash reduces holiday shopping stress. Just ensure you can comfortably repay it without creating January financial problems.

The goal: celebrate the holidays without debt. Scaled-back celebrations built on connection matter more than expensive Christmas presents purchased on credit. You can save money while still showing you care.

How Can You Stick to Your Christmas Gift Budget?

Creating a Christmas budget is step one. Sticking to it requires strategy and discipline to avoid overspending.

Create a Detailed Gift List

List every person you're buying Christmas gifts for. Beside each name, write your spending limit. Total everything up. If it exceeds your total budget, adjust individual limits or remove people from your gift list.

Track Spending as You Shop

Keep a running tally during Christmas shopping. Use cash envelopes, budgeting apps, or a simple notebook. Knowing exactly how much you've spent prevents overspending surprises at the store checkout.

Start Shopping Early

November holiday shopping beats December panic buying. You find better deals, compare prices thoroughly, and avoid last-minute expensive purchases. Black Friday and Cyber Monday offer legitimate ways to save money if you stick to your list.

Use Budgeting Tools

Apps help track Christmas expenses separately from regular spending. Bree's built-in budgeting tools help you monitor spending patterns and identify where money goes during the Christmas season.

Shop Sales and Compare Prices

Don't buy gifts at the first store you visit. Check multiple retailers, use price comparison sites, and wait for sales. Saving $10-$20 per gift adds up across 10-15 purchases.

Avoid Impulse Buys

Stick to your gift list. Stores design decorations and holiday displays to trigger impulse purchases. That cute item might seem like the perfect gift, but if it's not on your list and not in your holiday budget, skip it. Every gift you avoid buying impulsively helps you stay on track with your plan.

What Are the Consequences of Overspending on Christmas Gifts?

January financial stress hits hard when December Christmas spending spirals.

Debt Hangover

Credit card interest compounds daily. Spending $1,000 on credit at 20% interest means paying $200 extra if it takes a year to repay and regain control of your finances. Many Canadians take months clearing holiday debt.

Emotional Toll

Financial stress affects relationships, sleep, and mental health. Worrying about bills in January ruins the holiday joy those Christmas gifts created. Studies show 54% of Canadians feel financially burdened during the holidays, affecting their well-being. The average spending they planned often gets exceeded.

Missed Financial Goals

Money spent on excessive gifts is money not saved for emergencies, retirement, or other goals. Overspending $500 at Christmas time means $500 less toward your savings targets.

Creating Expectations

Overspending one year creates pressure to match that Christmas spending next year. Kids especially come to expect certain spending levels. Breaking this cycle gets harder each year.

The importance: live within your means. Going into debt for gifts makes no financial sense. Your loved ones want you to be financially healthy more than they want expensive Christmas presents.

How Can You Enjoy Christmas Without Breaking the Bank?

Focus on what matters beyond material gifts during the holiday season.

Prioritize Experiences

Create memories through activities. Baking together, watching holiday movies, building gingerbread houses, or driving through neighbourhoods to see decorations costs little but builds lasting memories.

Quality Time Over Quantity

Being present matters more than Christmas presents. Play board games, cook favourite food together, tell family stories, or volunteer as a family. Spending time in these moments means more in the long run than most physical gifts.

Set Family Expectations

Talk openly about realistic expectations for Christmas. Many families discover everyone's relieved when someone suggests scaling back. Agree on spending limits, doing Secret Santa, or focusing on kids while adults skip gifts.

Remember the Holiday Spirit

Christmas celebrates connection, gratitude, and generosity—not consumerism. The holiday season is about Santa bringing joy, not debt. Focusing on these values reduces pressure to spend more money while creating more meaningful celebrations.

Also read: How to Borrow Money for Christmas

Frequently Asked Questions

How much should I spend on my spouse or partner for Christmas?

Most Canadian couples spend on christmas gifts $50-$150 on each other, averaging around $100. The right amount to spend on Christmas depends on your combined income and what you both feel comfortable spending. Have an honest conversation and set mutual limits so neither person feels pressured to spend more money than makes sense. Consider experiences like concert tickets or dinner reservations instead of physical Christmas gifts.

How much should I spend on each child for Christmas?

Spending $75-$150 per child works for most middle-income Canadian families, though people typically spend different amounts. Factors include the child's age (teens often want pricier items), how many children you have, and your household income. Some families spend $50 per younger child, while others budget $200-$300 for teens. A good rule is focusing on meaningful Christmas gifts per child rather than piling up cheap items. Three quality Christmas presents beat ten forgettable ones.

Is it okay to set a spending limit with family members?

Absolutely. Most family members feel relieved when someone suggests spending limits for Christmas gifts. Propose gift ideas like Secret Santa with a $30-$50 cap, focusing gifts on children only, or doing a family experience instead of individual Christmas presents. Have this conversation in October or November—early communication prevents awkwardness and gives everyone time to plan how much to spend on Christmas gifts appropriately.

How do I tell someone I can't afford to exchange gifts this year?

Be honest and direct: "I'm focusing on paying off debt this year, so I won't be exchanging christmas gifts. I hope you understand." Most people respect financial responsibility and won't feel guilty about the decision. Offer alternatives like spending time together, making something homemade, or doing a low-cost activity. True friends and family care about your financial situation more than receiving Christmas presents. Don't let gift-giving expectations push you into debt.

Should I go into debt to buy Christmas gifts?

No. Going into debt for Christmas gifts makes no financial sense. Credit card interest at 20-25% means a $500 Christmas costs $600-$650 if you take a year to repay. Your loved ones want you to be financially healthy. Scale back to what you can afford with cash. If you need a small amount to make Christmas special, Bree offers interest-free advances up to $500—far better than credit card debt for holiday shopping.

How much is too much to spend on Christmas gifts?

Too much is any average amount that requires debt, prevents you from building savings, or causes financial stress. A good rule: Christmas gifts should be 5-10% of your monthly budget maximum. If you earn $4,000 monthly, spending $200-$400 on gifts makes sense. Spending $1,000 likely creates problems. If January means scrambling to pay bills or using credit for food, you spent too much to spend on Christmas.

What are some cheap but thoughtful Christmas gift ideas?

Thoughtful low-budget gift ideas include: homemade baked food like cookies ($10-$15 in ingredients makes multiple gifts), framed photos ($15-$25), service coupons for babysitting or yard work (free), homemade recipe books, plants or succulents ($5-$15), or quality hot chocolate sets ($15-$20). Personalized gifts showing you know someone's interests matter more than cost. A $15 gift reflecting real thought often feels like the perfect gift compared to a generic $50 purchase from any store.

Can I use a cash advance to buy Christmas gifts?

Yes, you can use a cash advance to buy Christmas gifts, but only if you can comfortably afford to repay it quickly. Bree offers interest-free cash advances up to $500 with up to 65 days to repay—far better than credit cards charging 20-25% interest for Christmas shopping. A $200 advance to buy meaningful Christmas gifts for your kids beats going without, as long as repaying $200 doesn't strain next month's budget and your overall financial situation. Never use payday loans (365% APR) or credit cards for gifts. If you need cash to help, Bree's $2.99/month fee is the most affordable option.

On a Final Note

There's no universal answer for how much to spend on Christmas gifts. Your gift budget depends on your income, family size, relationships, and financial goals. What matters: spend on Christmas within your means and focus on thoughtfulness over price tags.

Canadians spent an average of $1,853 on the holidays in 2024, but average spending doesn't mean you should match it. Budget $50-$100 for immediate family, $25-$40 for extended family, and $10-$30 for co-workers or teachers—adjusting based on what you can actually afford without going into debt.

Honest communication about your Christmas budget prevents overspending. Set limits early, suggest Secret Santa for large family member groups, and remember that connection matters more than consumption. Most people prefer your financial wellness over expensive Christmas presents. Don't feel guilty about spending less—it makes sense for your situation.

Need help making Christmas happen this year? Bree offers interest-free cash advances up to $500 with no credit check and up to 65 days to repay. Sometimes a small amount of cash makes the difference between financial stress and a meaningful celebration during the holiday season.

Focus on creating memories and avoiding debt. Plan how much to spend on Christmas gifts early, decide what the appropriate amount is for each person, and stick to your total budget. Start planning your Christmas shopping budget with Bree so you can celebrate the holidays and start January financially strong.

Citations:

[1] https://newsroom.bmo.com/2024-10-24-BMO-Survey-Canadians-Plan-to-Spend-Less-This-Holiday-Season

[2] https://madeinca.ca/holiday-spending-canada-statistics/

[3] https://hellosafe.ca/en/blog/christmas-budget-survey

[4] https://globalnews.ca/news/3805234/christmas-gifts-income/

[5] https://www.whatmommydoes.com/how-much-to-spend-on-christmas-gifts/