How to Make Gift Budget That'll Help You Save This Holiday Season
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While we may look forward to seeing our loved ones open their holiday gifts, shopping for them can be a different story. The cost of buying presents, on top of all our other life expenses, can contribute to a lot of unwanted stress during the busy holiday season — especially if you have a long list of people to shop for. To help keep your finances in check, it's a good idea to know how to make a gift budget.
We spoke with WalletHub analyst Cassandra Happek about the importance of creating a practical gift budget ahead of the holiday season. She also provided us with tips and tricks to save money while tackling your shopping list, so you won’t be too stressed out to enjoy the most wonderful time of the year. Here's what you need to know!
Plan Ahead
Shopping for Christmas gifts ahead of Black Friday might seem unthinkable. But face your fears, Happek says. Setting aside money for holiday shopping earlier in the year will help ensure that you’re more fully prepared once December rolls around.
“Consider setting up a dedicated savings account early in the year to ease the financial strain during the festive season,” Happek says. “Regular contributions to this account can make the holidays more enjoyable without the added stress.”
Review past years’ receipts
To map out your budget, look back on your spending history from holidays past. By adding up what you spent on last year's gifts, you can determine how much (or how little!) you can get away with spending on your friends and family this year.
What if you didn't save your receipts? Tallying up just the gifts you remember buying (especially if the products are easily searchable online) can give you an idea of how much to allocate toward this year's gift budget.
“When planning your holiday budget, it's essential to assess your previous year's spending and consider the number of recipients on your gift list,” Happek says, “especially when dealing with a large family or friend group.”
Choose experiences over things
Rather than buying physical presents, Happek suggests gifting experiences. Think: Cooking someone dinner, taking them on a hike, gifting them a pottery class, or bringing them ice skating. Not only are these types of gifts more memorable (and less disposable) than physical gifts, they’ll usually save you money, too.
“Prioritize memorable experiences over material gifts by allocating a portion of your budget to activities like a family movie night, a weekend getaway, or volunteering. These shared moments create a sense of togetherness and joy during the holidays,” Happek says.
She also notes that aside from saving money, it will help augment your holiday experience.
“Emphasizing the importance of togetherness and shared experiences can foster a deeper sense of holiday joy beyond material gifts,” she adds.
Organize a Secret Santa gift swap
Gifting swaps like Secret Santa or White Elephant not only make for fun party activities, but they're great for helping everyone stay within a manageable gifting budget. Participants only have to buy one gift for their randomly selected recipient, as opposed to spending money on each person.
“Try implementing a 'Secret Santa' system in larger groups to alleviate the financial burden,” Happek suggests. “This adds excitement while building camaraderie and encouraging thoughtful gift-giving among participants.”
Take advantage of discounts
Shopping the newest arrivals for your best friend's gift may be tempting, but Happek strongly advises against this. Instead, she says, opt for the discount section. Not only will you get the biggest bang for your buck, but you’ll also save money to tackle the remainder of your shopping list.
“You can take the initiative to adjust your expectations and use strategic shopping methods, such as using sales and price-comparison apps, to stay within your budget,” Happek says. ScanLife, ShopSavvy, and PurchX are a few price-comparison apps that many use to compare store prices.
Save on holiday travel by booking in advance
Airlines and rental car companies often tend to increase their prices during the holiday season. Last year, NPR recommended that anyone planning to travel for the holidays book their transportation in October. That’s why reserving all travel far in advance is crucial, to ensure you aren’t funneling most of your holiday money on simply getting where you need to be.
“Consider flexible travel dates and explore options for travel insurance to protect your plans and finances during the holiday season,” she says.
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