Some people love giving gifts, but giving indiscriminately can interrupt the giver’s own financial progress. When gift-giving is a strong part of your identity, that is likely reflected in your spending. If you start to feel like your tendency to give gifts is holding you back financially, it’s time to re-examine how exactly you are expressing your love through gifts and how you can prioritize your own financial health along with making your friends and family happy.
How to give gifts without breaking the bank
Budget for gifts and set up a sinking fund
Gift-giving should absolutely be celebrated as long as it’s not putting a strain on your finances to the point that you’re taking on debt or coming up short at the end of the month. One way to ensure that you have money to be generous with those around you is to budget for it. You can either budget a regular monthly amount or set up a sinking fund to contribute to throughout the year. If a gift-giving situation comes up, consult your gift budget or sinking fund to determine whether you can swing it.
Identify what’s important to the recipient
Growing up we’re taught to treat others the way that we want to be treated, but there is something to be said for the idea that we should treat others the way that they want to be treated. Just because gifts are how you express and receive love doesn’t mean that it’s the same for the recipient. This is good news for your wallet! Rather than getting them a gift, they may actually prefer an act of service or quality time with you. This can lessen the impact on your budget while increasing the satisfaction of the recipient.
Prioritize thoughtfulness over price
Some gift-givers fixate on the “higher price, more value” mindset and feel obligated to spend a certain amount on a gift. There is no “right amount” for a gift. It should be based on what you can afford and feel is reasonable for the occasion. If you often overextend yourself by spending on gifts, try reducing your target gift amounts. For example, if you’ve typically spent $50 on your mom’s birthday gift, challenge yourself to find a great gift in the $30 range.
Final Tips
Giving gifts is a way for you to express love or appreciation—you are under no obligation to give a particular type of gift or spend a certain amount on a gift. In fact, if the recipient cares about you too, they would not want a gift that causes you financial strain.
