If you’re struggling to stick to a financial plan when the holiday season rolls around, you’re not alone. One 2023 study by LendingTree estimates that over 30% of Americans go into debt during the holidays. As your list of loved ones grows, so too can the stress of deciding how much money to set aside for gifts. Here, we overview how to make the most of the giving season without breaking the bank.
Set a Limit
When creating a budget for holidays and special occasions, it’s the intention that counts. Experts suggest setting aside 1-2% of your annual income for gifts. For example, with an annual income of $35,000, one might reserve around $500 to purchase gifts throughout the year. As you make adjustments to this guideline, consider the number of people you would like to buy gifts for and how much you’re comfortable spending per person.
Make a List, Check it Twice
Even after creating a budget, it’s easy to lose track of spending in the hustle and bustle of holiday season. Document your expenditures as you shop, whether you use a budgeting app, a spreadsheet, or pen and paper. Planning gifts ahead of time can also alleviate last-minute stress and allow time to hunt for the best deals. By setting a financial limit and sticking to it, you make a promise to yourself and your loved ones not to overreach during this season and instead allow more time to enjoy the holidays stress-free.
Gift Tiers
Whether searching for affordable presents or saving up for something special, here is a range of gift ideas to help you plan for this holiday season:
Budget-Friendly:
- Eat: Homemade baked goods or drink mixes
- Experience: Second-hand books, movies, music, puzzles, or games
- Entertain: DIY personalized ornaments, photo album, or décor
Small Splurge:
- Eat: Basket of assorted consumables (cheeses and jams, sauces, oils, spice mixes, hot cocoa, coffee, and tea)
- Experience: Plan a picnic, dinner date, or class to take with your loved one
- Entertain: Decorative or seasonal serveware, wine/cocktail glass sets, personalized linens and towels
All-Out:
- Eat: Yearly subscription for a favorite food
- Experience: Save for an extended getaway or concert
- Entertain: A custom piece by a local artisan or craftsperson
Meet the Author
Tory Irmeger, BA, English
Tory Irmeger graduated from Lee University with a Bachelor of Arts degree in English with an emphasis on creative writing. While at Lee, Tory served as head of copy for the school’s biannual publication Vindagua. Since joining CMC Publications as editor, Tory has led ideation, conceptualization, and development of numerous health, wellness, and lifestyle articles published in print and online for HealthScope, CityScope, and Choose Chattanooga magazines – premier publications serving S.E. Tennessee and North Georgia.
