Canadian parents are facing the difficult challenge of balancing the costs of living with the costs of the holiday season this year.

More than half of those with children under the age of 17 are unable to afford what they want to give their children, while 45 per cent said they feel pressure to overextend their budget this holiday season, according to a

recent survey by Royal Bank of Canada . Additionally, 67 per cent of respondents said they would sacrifice their own financial future to spend what they can on their children and 41 per cent have already dipped into emergency savings to cover family costs.

“Trying to balance needs versus wants for your children can be even more challenging during the holiday season, especially when you’re finding it difficult to cover everyday costs throughout the year,” Dawn Tam, senior manager and a regional financial planning consultant with RBC Financial Planning, said in a release. “This is when a conversation about your finances with an adviser can help you explore options for managing the trade-offs, so holiday spending doesn’t get out of hand.”

Canadians are expected to spend about $1,521 on the holidays this year, which includes gifts and holiday entertaining,

according to Deloitte Canada. That total represents a three per cent climb from last year, but Canadians are expected to spend about the same on gifts and experiences compared to last year, with a 13 per cent climb in holiday entertainment spending.

Beyond the holidays, parents are having a hard time keeping their budgets in check.

RBC said 72 per cent of parents were caught off guard by how much prices have risen lately, while 94 per cent are worried about costs climbing even further in 2026.

“Parents often underestimate how much extras add up over the year, which can bring some unexpected pressure on family finances,” Tam said. “Smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands.”

To keep holiday spending in check this year, Toronto-Dominion Bank recommends making a budget and sticking to it and getting creative with gifts, whether that means, for example, thrifting or using loyalty points.

“The holidays are about making memories and spending time with loved ones, and you don’t need extravagance for that,” Joe Moghaizel, vice-president of Everyday Advice Journey at TD, said.

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Interim Parliamentary Budget Officer Jason Jacques is walking back comments critical of Prime Minister Mark Carney’s fiscal policy.

In September, he called the policy “stupefying” as spending promises mounted, but now regrets the words, despite wanting to draw attention to Canada’s change in fiscal direction.

Carney’s first budget from November adds billions in deficits to boost military, infrastructure and housing spending.

Now, more than three quarters of economists have upgraded their forecasts for the Canadian economy, which also has among the lowest debt to GDP ratios among the G7.

Still, Jacques calls Canada’s fiscal situation “serious” and “challenging.”

  • 9:45 a.m.: Bank of Canada interest rate announcement
  • 2:00 p.m.: U.S. Federal Reserve interest rate announcement
  • Today’s Data: U.S. employment cost index for the third quarter, U.S. wholesale trade for October, U.S. Treasury budget for November
  • Earnings: Oracle Corp., Adobe Inc., Roots Corp., Transcontinental Inc. 
  • Telesat, MDA Space awarded the first contract from Ottawa’s new defence investment agency
  • CCI’s new CEO pledges more support for Canadian businesses as Trump raises tech stakes
  • Tax reform requires more from the Liberals than just a minuscule tax rate reduction
  • Air Transat cancels flights on Tuesday ahead of potential pilots strike

Read more. We’re down to the final few weeks to save on your 2025 taxes before the New Year kicks in. Tax expert Jamie Golombek walks us through some last-minute financial planning ideas, such as tax-loss selling, charitable donations and managing your RRSPs and TFSAs.

Read more here. Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on  one of the country’s most important sectors.

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wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

Financial Post on YouTube

mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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