Rising prices have many Canadian parents rethinking their holiday spending this year, and a new study shows that many are relying on grandparents to help them buy gifts.

According to a recent Interac survey, three-quarters of parents said creating a magical holiday season for their children is their top priority, even though many admit it’s becoming more difficult.

Of the 377 parents surveyed across Canada between November 19 and 24, 66 per cent said higher costs are making it harder to manage holiday spending, and more than half (52 per cent) are worried about overspending.

Some shoppers on a rainy day in Vancouver said they’re already feeling the financial strain.

“Everything’s expensive, and I only work part-time,” said Claudia Miranda, who’s shopping for her five-year-old son. “My son wants a pair of 3D glasses… if I buy them, it’ll be about $400.”

Nearly half of parents surveyed (45%) said they plan to spend less than $500 on gifts this year. A quarter have set a budget between $500 and $999, and about three in ten (28%) expect to spend more than $1,000.

When asked about his budget, Vancouver shopper David Newberry described it in one word: “very limited.”

With costs rising, some families are turning to helpers. The survey found that more than a fifth of parents (21%) rely on grandparents to help cover holiday expenses. A third (33%) said grandparents spend more on gifts than parents do.

“We’re very lucky,” said Megan Jones, a mom who was shopping. “We have a lot of help from grandparents. My son wants to take a trip, and my grandparents are paying for it.”

For Jones and many other parents, the financial strain is compounded by the busy holiday schedule.

“All the activities, the concerts, the parties, the camps… it just keeps going,” she said with a laugh.

The financial impact of the holiday season often lingers long after the holidays. 40 percent of parents say they struggle financially every year with holiday spending, and nearly half (44 percent) say it usually takes until spring to get back on track.

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