Setting Expectations with Family and Friends
Many people suffer from anxiety and stress when it comes to gift-giving. Before you start buying gifts, set your expectations with friends and family. You can establish a financial limit for each person, for example, $10 per person, or decide to only buy gifts for the children. Setting expectations in advance can allow everyone to participate comfortably without worrying about giving or receiving an expensive gift. You can also try a gift exchange game like White Elephant or Secret Santa. This way, you can spend money on one high-quality gift instead of attempting to spread your budget across many people. Everyone can receive a gift they feel excited about.
Classifying Gift Recipients
To keep yourself on track, you’ll want to set a budget that you won’t exceed. Saavedra suggests dividing the people you are buying gifts for into three groups:
- Acquaintances
- Colleagues, teachers, and others who play an important role in your daily life
- Close friends and family
Dividing recipients in this way can help you set limits for each person based on the category. For example, you might send a thoughtful gesture to acquaintances or give them something small like a holiday ornament. You can give strategic gifts to your colleagues or your child’s teachers. Baked goods, coffee gift cards, and mugs filled with hot chocolate or coffee are some low-cost options that may fit your budget. If you have many people in this category, you can save money by purchasing gifts in bulk from warehouse stores at discounted prices like Costco and Sam’s.
Avoid Using Credit Cards and BNPL Plans to Stretch Your Budget
While you may want to splurge on your loved ones, spending beyond your budget can lead to debt that’s difficult to get rid of. Although it can be tempting to use a credit card or Buy Now, Pay Later plans to buy something now and worry about the bill later, it can severely impact your financial situation for years to come. If there’s a gift you want to buy and can’t afford right now but know you can pay it off in full within a few weeks, these options might help you. However, you might also consider Amazon’s installment payment option, where more protection is available to help you avoid debt. And if you decide to use a credit card to finance a purchase, consider using a card with a 0% annual percentage rate, which can help you save on interest for a specified period.
Don’t Wait Until the Last Week Before Christmas to Start Shopping
To save your budget as much as possible, start buying gifts early to get the best deals. If you wait until the last week before Christmas, you may find that the best deals are gone. Retailers often know when you’re pressed for time to buy gifts and may raise prices. It’s not too late to set a budget. You might be able to spread your budget over upcoming payments to alleviate the stress of buying gifts all at once. Although early holiday sales are fading, you can still find some deals on gifts. But as Christmas approaches, the items on sale will decrease or become less available.
Thoughtful Gifts Don’t Have to Cost a Fortune
Gift-giving should be fun, but if you can’t spend money this year, there are other options. Your time and any special skills you have can be wonderful gifts. One of Saavedra’s favorite gifts for parents with young kids is babysitting vouchers. “It may cost you time, but it will be very meaningful to parents who sometimes pay $25 an hour for childcare,” she said. “Going out for a four-hour evening can easily cost them $100.” Think about how your creative skills can help others. Here are some more examples of service gifts for your loved ones for which you can create handmade vouchers or gift certificates:
- Offering
- Helping a family member with tax filing who is having difficulty with it.
- Pet sitting or dog walking while your friend’s upcoming vacation.
- Cleaning the house for a family with a newborn or a friend busy with work.
- Creating a website or logo for a friend with a new business.
- Carpooling with kids whose parents work on conflicting schedules.
- Home repairs or upgrades for someone who may need a handyman or doesn’t have time.
If you still want to give a tangible gift, consider a handmade card, Christmas cookies, or a family photo in a frame.
Savida and To agree that giving gifts shouldn’t put pressure on your budget. “At the end of the day, it really is about the thought,” said To. “It’s about making sure you’re giving a meaningful gift and it doesn’t have to be the most expensive on the shelf.”
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