Report: 2 in 3 Canadian Holiday Shoppers Are Making Financial Changes In January After Holiday Spending

One-Third of Canadian Holiday Shoppers Went Over Budget This Holiday Season, New Report Shows

TORONTO--(BUSINESS WIRE)--The Post-Holiday Reset Report, conducted by KOHO, reveals how Canadians are recalibrating their finances after the holiday season. Nearly one in three holiday shoppers went over budget this holiday season, sparking a wave of financial adjustments in January as prices continue to climb and economic uncertainty persists.

Two-thirds (67%) of Canadians who participated in holiday shopping say they are making at least one financial change in January, most commonly by eating out less (47%) and delaying discretionary purchases (38%). Among those who overspent, these adjustments are even more pronounced.

The report draws on KOHO internal spending data from September 2025 to January 2026, alongside a national survey of 1,317 adult Canadians who participated in holiday shopping. The combined insights show a clear pattern: holiday overspending is often driven more by social expectations than poor planning, and Canadians respond quickly to regain control of their money.

Key findings from the report include:

January triggers a financial reset

• 47% of holiday shoppers are eating out less this month.
• 38% are delaying clothing or personal purchases.
• 24% of holiday shoppers are postponing travel or leisure spending.
• 24% are spending less on groceries and household essentials.
• Among shoppers who went over budget:
  • 59% are eating out less.
  • 50% are delaying clothing or personal purchases.
  • 28% are cutting back on groceries or household essentials.

Social pressure, not planning, drove overspending

• 33% of holiday shoppers cited societal expectations around gift-giving as a major influence.
  • That number rises to 43% among those who exceed their holiday budgets.
• Younger Canadians felt this most strongly, with nearly half of Gen Z (49%) reporting that social pressure influenced their holiday spending.

Credit use reflects timing, not impulsive spending

• Only 15% of shoppers who overspent plan on using credit more after the holidays.
• KOHO data shows tools like Pay Later (+23.4% spike during holidays) and overdraft protection (+24.5% spike in December) peak around bill dates rather than peak shopping days, indicating careful cash-flow management rather than impulsive spending.

“The holidays don’t create stress over money — they 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.”

Despite these adjustments, confidence remains fragile. One-quarter of holiday shoppers say they are not confident in their financial situation after the holidays, rising to 33% among those who went over budget. KOHO offers tools such as Cover (overdraft protection), automated savings, and credit-building features to help Canadians navigate these periods.

To learn more about KOHO’s financial tools, visit koho.ca.

About KOHO

Founded in 2014, KOHO is one of Canada’s leading financial technology companies, transforming the way Canadians spend and save. Through koho.ca and the KOHO app, users can access a spending and savings account with no hidden fees, along with tools like Cover (overdraft protection), Credit Building, and RoundUps. KOHO helps Canadians manage their money day-to-day, build financial empowerment, and work toward long-term stability. Headquartered in Toronto, KOHO serves users across Canada.

To learn more about KOHO, visit koho.ca. Read more on our blog here.

METHODOLOGY (KOHO Survey):

These findings are from a survey conducted by KOHO from January 12th to January 14th, 2026, among a representative sample of 1317 online adult Canadian holiday shoppers who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.7 percentage points, 19 times out of 20.

METHODOLOGY (KOHO Internal Data):

This data reflects anonymized, aggregated spending behaviour from KOHO users across Canada. The analysis examined transaction activity between September 2025 and January 8, 2026, comparing pre-holiday spending (September–October 2025), peak holiday spending (November–December 2025), and post-holiday adjustments (January 2026), using daily averages. Spending was grouped into essential and non-essential categories to assess changes in discretionary behaviour and the use of financial tools during and after the holiday period.