When extended family gatherings grow larger or children reach a certain age, many Canadian families set rules around gift giving—limits on spending, gifts only for kids, or themed exchanges. Lately, some households are taking it a step further and opting out of gift exchanges entirely. The reason is simple: rising costs are squeezing budgets. A survey from payments company Square highlights what it calls “gift‑flation,” with many Canadians tightening spending and rethinking holiday traditions.
Yes, gift‑flation
Square defines “gift‑flation” as the growing expectation that gifts are costing more this year because of factors outside shoppers’ control. Roshan Jhunja, Square’s head of retail, says the survey found Canadians anticipate higher prices across many categories and are responding by becoming more deliberate with purchases: 83% of respondents reported they’d be more intentional and hunt for deals more aggressively.
Deloitte Canada’s holiday spending report echoes that caution: Canadians are planning to spend less this season, with average planned spending falling compared with last year. That combination of rising prices and smaller budgets has people exploring alternatives—buying local, shopping sales, or rethinking whether gifts are necessary at all.
For example, I recently had to explain to one of my niblings that, as much as I wanted to, I couldn’t afford the virtual reality system they hoped for. Rather than pretend all was normal, I was upfront about my limits and offered alternatives that would fit my budget. They appreciated the honesty and suggested other ideas that worked for both of us.
No gifts this year: Why is it so hard to say?
Talking about money remains awkward for many people. Susy Fossati, owner and director of Avignon Etiquette in Toronto, points out that finances often shut down conversations in the same way topics like politics or religion can. Because money can imply differences in status—“haves” and “have‑nots”—people tend to avoid it, even when a candid conversation would help everyone plan.
How to say no to gifts this year without awkwardness
Etiquette is really about making others comfortable, so approach the topic early and respectfully. Fossati recommends being proactive: if your finances have changed, explain that you’re making different choices this season and offer sensitive alternatives. Clear communication prevents assumptions and helps everyone avoid last‑minute awkwardness.
Avoid these common mistakes: waiting until the last minute (family members may have already bought gifts), dropping vague hints instead of speaking plainly, refusing to talk about it, or coming across as judgmental. Instead, be direct and compassionate. You might say, “I’d love to take part, but I won’t be able to this year,” and invite others to share whether they’d like to opt out too.
If someone reacts negatively, listen, acknowledge their feelings, restate your situation calmly, and give them time to adjust. Most people are dealing with the same economic pressures and will likely understand once you explain your reasons.
It’s the thought that counts
When you do give, remember that meaningful, low‑cost gestures often outrank expensive but impersonal items. Groups can choose budget‑friendly swaps—book exchanges, homemade treats, a potluck lunch, or planning a future shared activity. Those options preserve the spirit of giving without straining wallets.
The right way to regift
Regifting can be perfectly acceptable if it’s done thoughtfully. Follow a few basic rules to keep it polite and considerate:
- Check for expiration dates or perishable elements before passing an item on.
- Never regift within the same close friend circle or family group where the original giver might recognize it.
- Rewrap the item and present it as new, not as something you didn’t want.
- Make sure the gift suits the recipient’s tastes and needs.
- Add a personal touch—giftwrap, a note, or a small extra to show you thought about them.
For instance, if you received a kitchen dish you can’t use, pass it to someone who loves entertaining and include a small, thoughtful add‑on like homemade cookies or a pretty dish towel to personalize the gift.
It’s not that big of a deal—many households are adjusting
Most families are adjusting traditions to fit current realities. Cutting back or skipping gifts doesn’t mean you care less—often it reflects a desire to reduce stress and focus on meaningful connections. Being honest about budgets can even free others to make similar choices.
Read more about holiday budgets:
- The gift of not giving
- Want to save money on gifts? Embrace holiday sales, and start early
- Budgeting for a less stressful holiday season
- 6 money moves to prepare for the holidays—with a recession to come
- The holidays on a budget: How to avoid credit card debt