Bye Bye, Gift Case. Here’s How To Catch Up On Holiday Donations Without Spending Too Much
There are many holiday sales going on, and many promise great savings. Between the deals and worries about gift-giving, the holiday season can stir up a lot of emotions… and lead to debt. Most of us make trade-offs to pay for the holidays, including shopping less and shopping for fewer people, according to CNET’s holiday spending survey.
Despite these trade-offs, it’s easy to overspend. Shang Saavedra, CNET Money expert and founder of Save My Cents, says that often, people start the new year stressed and trying to get their finances back on track.
“I’ve seen consumers spend hundreds or thousands of dollars during the winter holidays on celebrations, travel and gift-giving, only to be faced with insurmountable credit card debt in January,” Saavedra said.
That should not be your reality. You can start 2025 feeling confident in yourself the budget and set aside your money new year goals. And you’ll still be able to give your loved ones a meaningful gift without feeling guilty. Here’s what we recommend.
Set expectations with family and friends
A lot of anxiety around giving gifts it comes from trying to match the recipient’s effort and spending. Before you start buying gifts, stop by your friends and family, says Saavedra. For example, set a dollar limit of $10 per person or buy gifts only for the children. Setting expectations now can put everyone at ease without worrying about expensive gifts.
Another way to keep costs down is a gift-giving game, such as White Elephant or Secret Santa, where you are responsible for buying one gift for one person. Getting gifts for everyone is expensive, so this helps to work with the budget.
Read more: My spending trigger is FOMO. Here’s How I Maintain It
Categorize the gift recipients
To keep yourself on track, set a budget that you won’t go over and set limits for each person by category. Saavedra suggests dividing the people you buy gifts into three groups:
For example, you might consider sending acquaintances or coworkers a thoughtful gesture like a handwritten card. Or you can give them something small, like a holiday decoration.
Finding a way to lower the cost of the first two groups of recipients can free up money for your loved ones, such as close friends or family, who may want to spend less on it. Anyway, I say to them, set a dollar amount you’re comfortable with.
Read more: No, You Don’t Have To Give Holiday Gifts This Year. How to Get Over It Without Shame
Choose thoughtful gifts without high price tags
Saavedra knows how frustrating it is to not be able to afford the best gift, but it’s best to prioritize your financial needs and goals. There are other options being considered that can be just as effective but cost a fraction of the price.
Get creative with homemade crafts and treats
Consider a homemade card, holiday cookies or a framed family photo. Saavedra said there is no shame in re-registering something you may have acquired from someone else during the year.
Buy gifts in bulk
If you are giving to multiple recipients, Saavedra also recommends buying in bulk. You can save money by buying gifts at discounted prices at discount clubs like Costco and Sam’s.
Give your skills and time
Your time and any other special skills can also make great gifts. One of Saavedra’s favorite gifts for parents with young children is childcare coupons. “It may be time-consuming, but it can be very helpful for parents, where sometimes babysitting these days starts at $25 an hour,” she said. One four-hour night can easily cost them $100.”
Consider how your creative skills can help others and create a coupon or gift certificate. Here are a few more examples of service gifts for your loved ones:
- Filing taxes for a family member who has trouble with this job
- Home cooked meals that you can prepare for next year
- Walking dogs, pet sitting or running errands during your friend’s next vacation
- Cleaning the house for a family with a new baby or a friend who is busy with work
- Creating a website or logo for a friend who has a new business
- Carpooling for children whose parents have conflicting work schedules
- Home repairs or improvements for someone who may need a job or don’t have time
Read more: The Best Last Minute Gifts You Can Print or Email
Don’t wait until the week before Christmas to go shopping
To stretch your budget as much as possible, shop early to get the best deals. Saavedra uses browser extensions on his favorite websites of sellers, such as Camelcamelcamel, to check the price history to find the most expensive items.
If you wait until the week before Christmas, the best deals may be gone, as retailers tend to mark prices later in the season.
However, early holiday sales are in full swing right now, so you can find great deals on gifts.
Avoid using credit cards and BNPL schemes
Time and time again, Saavedra has seen people trying to recover their finances and recover from overspending and debts accumulated since the holidays.
While it’s tempting to consider bundling gifts with financing options, such as a Buy Now, Pay Later plan, doing so can seriously hurt your finances in the years to come.
“Those are high-interest consumer loans to use your income.” Instead, Saavedra recommends spending only what you have and looking for other gifts instead.
If there’s a gift you want to buy that you can’t afford right now, but know you can pay for in full later, consider Amazon’s alternative option, which has additional protections to help you avoid debt. And if you decide to use a credit card to pay for purchases, consider a 0% APR card, which can prevent interest charges from piling up for a period of time if you can’t pay off your balance quickly.
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