The holiday season is expensive: consumers in the U.S. spend about $1,000 annually on Christmas each year. With the added costs of inflation this year, budget-conscious shoppers will have an even greater challenge than usual. Fortunately, there are ways to keep your spending under control while still spreading holiday joy.
Ask For a List
Wishlists are great for two reasons: 1) they reduce the stress of having to generate ideas, and 2) you can pick a gift that’s priced within your budget and know that it’s something the recipient actually wants. If all of the gifts on the list exceed your budget, look for someone to go in on the gift with you.
Tighten Your Circle
Think about who you gave gifts to last year and how you felt about that. Did any of your gift-giving experiences leave you with a twinge of resentment? If so, that’s a sign that you are giving out of obligation, rather than from a place of generosity, and you may be better off emotionally and financially by leaving those recipients off your list this year.
Deciding not to exchange gifts with someone you care about can also be a kindness to both of you; you aren’t the only person who is trying to save money! The key is to initiate a discussion about it well in advance of the holiday so no one is surprised. Then, to stick to the commitment. Showing up with even a small token after agreeing not to exchange gifts can leave the other person feeling bad for not being able to reciprocate.
Spend Less Per Person
There is no rule about how much you need to spend on a gift for someone. If you typically spend a certain amount (let’s say $50 per person), but your budget is tighter this year, see if you can lower your guidepost to $30 per person and still find something the recipient would like. You might be surprised at what you can find if you’re up for the creative challenge and the recipient will likely be none the wiser.
Embrace “Closet Christmas”
Don’t be afraid to include pre-loved items in your gifting repertoire. In my family, this practice has come to be called “Closet Christmas.” Obviously, make sure that the gift is in good condition and something the recipient could actually use such as a dress that your sister always wants to borrow or a book you own that you know a friend will love. This can extend beyond your own closet to include other used items from your local Buy Nothing group, thrift store, or Facebook marketplace.
Spend Time, Not Money
Rather than spending money on a gift, consider suggesting doing an activity together instead such as attending a Christmas market or going out to a special dinner. You can control the cost by picking an activity that fits your budget. Some activities, such as walking or driving around to look at Christmas lights with a thermos of hot chocolate, can be practically free.
