We probably don’t need a bunch of data to back up the assertion that, entering 2026, many households across Canada are feeling the squeeze financially.
But here it is anyway.
The Royal Bank of Canada recently found that families throughout the country are dealing with a “parental pressure-cooker” situation during this year’s holiday season as household budgets “overheat” amid higher and higher costs of living.
The “RBC Family Finances Poll” released this month found that more than 70% of Canadians were “surprised” by the jump in expenses in 2025, and now two-thirds are worried about not being able to cover costs for their family, with more than half reporting that their budgets are stretched thinner than ever.
“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,” says Dawn Tam, a B.C.-based Senior Manager with RBC Financial Planning.
More than 40% of Canadian parents have dipped into their savings or emergency fund while 33% have taken on debt to cover family costs.
“Parents often underestimate how much extras add up over the year, which can bring some unexpected pressure on family finances,” noted Tam. “Smaller costs can quickly reach hundreds of dollars, while bigger expenses can run up into thousands.”
The Canadian Imperial Bank of Commerce, meanwhile, found that Canadians are skipping out on their favourite winter activity—travelling somewhere warm—this winter due to budget concerns.
Nearly 80% of Canadians agree that travel has become more expensive in recent years, according to CIBC’s survey—and as a result, this season over 60% are opting out of travel, with one-third citing budget limitations.
Overall, 38% of Canadians plan to travel this winter, down from 41% last year. Just 12% plan to travel abroad.
“Canadians are showing both resilience and adaptability this holiday season, and whether its travelling within the country or gathering at home, the focus is on connection, comfort, and making smart financial choices,” stated Carissa Lucreziano, who functions as Vice-President of Financial Planning and Advice at CIBC.
This year, CIBC became the first Canadian bank to offer MasterCard’s Touch Card.
RBC—the country’s largest publicly traded company with a market capitalization north of $300B—is a global leader in AI.
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