It’s the most wonderful time of the year — but it’s also one of the most expensive. Say what you will about the magic in the air and the joy in people’s hearts, but recent data from Deloitte predicts that holiday sales will total between $1.54 trillion and $1.56 trillion this year. That magic and joy certainly comes at a high price!
With all that said, Christmas still doesn’t have to cost a fortune. In the following article, we’ll explain how to maximize your budget while minimizing your spending, and we’ll even suggest a few low-cost gifts to help you save for Christmas. Read on to learn more about our cost-effective gift-giving strategies — we promise it’s more fun than it sounds!
Revisit Last Year
Somewhat paradoxically, the first thing you should do when planning your gift-giving budget is to examine your spending habits from last year. Were there any gifts you purchased that burst your budget or left you scrimping when it came to other people’s wish lists? Did you have more or less saved this time last year than you do now? Factoring in last year’s successes and missteps when calculating this year’s budget will help you stay on track. Indeed, this exercise might even determine whether you’re spending too much on gifts in general, according to Jay Zigmont, CFP and Founder of Childfree Wealth.
Draw Up a Budget
A couple of months ahead of the holiday season is the perfect time to devise a strict budget — whether it’s in the form of an Excel spreadsheet or through an app like Mint, PocketGuard, or Spending Tracker. Once you’ve worked out a figure based on your spending last year — as well as your circumstances this year — divide that between all the people on your shopping list and stick to the amounts you come up with. The Balance also recommends over-budgeting by around 15% to take into account last-minute gifts or unexpected price changes.
Plan a Gift Exchange
Another way to mitigate your holiday debt is to participate in a Kris Kringle or Secret Santa gift exchange. Put the names of your family members, friends, or coworkers into a hat, and then covertly redistribute the pieces of paper; everyone must then ONLY buy a gift for the person they drew. These games usually come with a predetermined spending limit, ensuring that the most you’ll spend will probably be between $20 and $50. Focusing on just one gift can also force you to put more thought into it (as opposed to half-heartedly scrambling for a whole household’s worth of presents).
Pro Tip: If you’re attending a White Elephant gift exchange event, get some ideas and inspiration from our curated list of Best White Elephant Gifts! If you’re scrambling, check our Funny Last Minute White Elephant Gift Ideas article for help
Make Your Own Gifts
In the true spirit of Christmas: Have you considered opening your own little workshop? Being the industrious elf you are, it might be easy (and enjoyable) to cook someone a meal, bake someone a cake, put together a photo collage, or even mold some homemade soap! Money Crashers also notes that, when you make homemade gifts, “you also have the chance to spend time with your family […] hold a craft night and bond with your kids [… or host] a bake-a-thon and bond with your spouse or partner.” They suggest buying your ingredients in bulk to avoid eating into that all-important budget.
Trim Your Gift List
Along with cutting back on your expenditures, it’s also a good idea to reduce the number of recipients you have in mind. Perhaps this year you’ll leave out your extended family or bring up the possibility of a one-for-one gift exchange among your social circle. These slight amendments to your gift list will relieve your budget while allowing you more time to shop for the people who CAN’T be left out.
Ease Up on the Supplies
Spending too much on the various holiday-related trappings — such as wrapping paper, cards, and gift tags — can prove to be its own, um, trap. Instead, consider sending e-cards or custom holiday cards, the latter of which “can be some of the most cherished and also some of the least expensive,” according to Forbes.com.
Wrapping paper may not always be necessary if the store provided an attractive-looking bag, and simple labels or Post-It Notes can also be used as gift tags in a pinch. Overall, many people make the mistake of replenishing their wrapping supplies each year when last year’s box of decorations may still be perfectly usable.
Stay Tuned for Sales
Waiting until the last possible minute to do your holiday shopping is another common pitfall. Instead of procrastinating this year, one of the best shopping tips is to make use of the various sales and online promotions that will run throughout the month of November like Black Friday, Cyber Monday, and Small Business Saturday. When it comes to online stores — and some brick-and-mortar stores, too — make sure to subscribe to newsletters and marketing emails that will remind you of upcoming sales. Many of them even include coupons and promotional codes.
Pool Your Funds
Let’s return to your family or circle of friends for a moment. If you’re aiming to get your parents or best friend a luxurious item that’s just outside your budget, try pooling your money with your siblings or other friends. That way, the cost is shared and no one person is burdened with a weighty transaction on their bank statement. This strategy is effective at any time of the year and for any occasion; in fact, as The Balance writes, events like baby showers and weddings can often require pricey presents.
Buy Budget Gifts!
Finally, if you’ve taken all of the above tips into consideration and are ready to start shopping, then how about checking out our “Gifts Under $20” and “Gifts Under $50” guides? These stylish but affordable gift ideas run the gamut from artisan-made pint glasses to “FRIENDS”-branded merchandise, and they can all be customized with names, photos, and dates. You’ll also find links to the relevant Zazzle stores above each product description, so you can peruse a whole range of similarly themed, but variously priced, apparel, stationery, and accessories.
We hope the above ideas have given you plenty of economical inspiration. Above all, it’s important to start early, allowing yourself the maximum possible time to do your holiday shopping before December rolls around. As magical and joyful Christmas Day might be, running around high-street stores on Christmas Eve is decidedly less so!
Eoin is a Content Specialist at Zazzle in Cork. He’s recently bought a house with his fiancée, and thus most of his time these days is spent trying to keep the walls from caving in and the wolves from the door. Still, he’s always open to book, game, and movie recommendations, so if you have some, let him know: he’ll add them to a very, very long list.
I couldn’t agree more! The holiday season can be magical, but the expenses can add up quickly. It’s always great to find ways to make the most of the holidays without breaking the bank.