Master Holiday Shopping Without Ruining Your Finances

Set expectations with family and friends

Much of the gift-giving anxiety stems from trying to match the recipient's effort and spending. Before purchasing gifts, establish clear guidelines with your loved ones. For instance, set a $10 per person spending limit or focus on buying gifts only for the children. This sets the stage for a comfortable gifting experience without the pressure of expensive presents.

A gift-giving game like White Elephant or Secret Santa can also be a great way to keep costs in check. By being responsible for just one gift, you can enjoy the holiday spirit without overextending your budget.

Categorize gift recipients

To stay on track with your budget, set a spending limit for each category of gift recipients. Divide them into three groups: acquaintances like colleagues and teachers, those who play an important role in your daily life; close friends and family. For acquaintances, a hand-written card or a small holiday ornament can be a thoughtful gesture. Allocating your budget wisely allows you to focus more on your loved ones and spend a bit more on them.

Choose thoughtful gifts without steep price tags

It can be disappointing not to be able to afford the fanciest gift, but prioritizing your financial needs is crucial. Get creative with homemade crafts like cards or holiday cookies. Regifting an item you received during the year is also a viable option and comes with no shame.

If you're buying for multiple recipients, buying in bulk at wholesale clubs like Costco and Sam's can save you money. Consider gifting your skills and time as well. For parents with young children, babysitting coupons are a highly valued gift. You could also offer to prepare a home-cooked meal next year, walk their dogs during their vacation, or provide other services that are meaningful.

Don’t wait until the week before Christmas to shop

To make the most of your budget, start shopping early. Use browser extensions like Camelcamelcamel on your favorite retailer websites to check price histories for expensive items. Waiting until the week before Christmas often means missing out on the best deals as retailers tend to mark up prices later in the season. Currently, early holiday sales are in full swing, offering great opportunities to find gifts at discounted prices.

Resist turning to credit cards and BNPL plans

Saavedra has witnessed many people trying to recover from holiday overspending by using financing options. While Buy Now, Pay Later plans may be tempting, they can have a long-term negative impact on your finances. Instead, only spend the money you have and explore alternative gift options.

If there's a gift you desire but can't afford right away, consider Amazon's layaway option, which provides more protection against debt. If you do use a credit card, opt for a 0% APR card to avoid interest charges if you can't pay off the balance immediately.