Since the COVID-19 pandemic, inflation has been a problem. This was due to supply chain disruptions that caused increased demand and increased prices for certain goods. Although we thought it was temporary it still affects consumers in many ways. This includes how they celebrate special occasions with their families.

Although the holidays are over, many people still struggle with the consequences of holiday spending. A new Ipsos survey found that 71% of Canadians felt inflation had affected their holiday shopping and 57% struggled to pay for gifts.

Even months later, this overspending continues its negative impact on their lives. More than a third of respondents to the survey said that it would take them until April before they could recover financially.

Inflation Strikes Parents the Most

Most holiday shoppers believed inflation had affected their spending. However, parents with children were the worst hit. Parents surveyed claimed that they spent $614 less on holiday shopping than the average.

Gifts weren’t the only thing that were difficult to buy. Parents also spent their most on family and friends experiences.

Overspending can cause a ripple effect, which can last well beyond the original purchase. Many parents were disappointed by holiday spending. 49% of respondents estimated that it would take them until April to get back on track.

Respondents were also asked what they would do if given an additional $5,000. 35% said they would pay off debt. 31% said that they would save the money. 16% stated that they would treat themselves with the extra $5,000.

How To Reduce the Impact of Inflation

Inflation is currently at 6.41 percent as of January 2023. This is down from 9.06% last summer, but high enough to cause financial stress for many people. These are some strategies that you can use to meet your daily expenses despite inflation.

• Make a budget. This is the best way for you to keep track of your expenses and find areas where you can make savings. It’s a good idea to budget, especially during inflationary times.
• Bulk buying: This is a great way to save money on household goods and non-perishable food. Wholesale retailers such as Costco and Sam’s Club offer bulk purchasing.
• You can save money by shopping around for goods or services. You might need to compare prices or find retailers offering the best deals and discounts.
• Prioritize your spending. If you are struggling to make ends meet, it is important to prioritize your spending so that you can spend your money on the things you actually need. Spend less on discretionary items and focus your money on essentials like housing and healthcare.

The Bottom Line

Although inflation is slowly improving, it still poses financial problems for many consumers. Budgeting and prioritizing are the best ways to combat inflation. You can protect your finances by taking steps to control your spending and reduce discretionary spending.