By                    Jenny Rose Spaudo

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Start With Your Budget

Should you spend $15 or $75 on a gift for your favorite boss or teacher? The average consumer in the U.S. planned to spend $25 on gifts for co-workers in 2021, according to Statista. But Shelley Hunter — consumer gift card expert at GiftCards.com — said there’s no set amount you have to spend on holiday gifts. Instead, she encourages people to first look at their budget.

“Start with a list of people and set your budget,” she said. “Inflation continues to impact prices across the board–from big-box retailers to online brands to restaurants. You can do yourself a favor by calculating how much you can afford to spend (and how much you want to spend) so you know ahead of time which products and services you should buy and which you should skip.”

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Do Holiday Gift Swaps for More Formal Relationships

During the holidays, it’s common to buy gifts for people in the office or at school even if you’re not close with them, said Hong Bloom, head of customer engagement and experience at TD Bank. But what if you can’t afford individual gifts this year?

For in-office acquaintances, consider doing a holiday gift swap so that each person buys just one gift for the person they’ve been assigned to.

“For teachers, you could consider a group gift with other families in the classroom to cut costs,” Bloom added. “These tips are quick ways to cut costs but still participate in the gift-giving fun.”

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Save for Holiday Gifts Year-Round

Bloom said the best way to avoid financial stress during the holidays is to stick to your budget throughout the year.

“Knowing what comes in and out of your bank account and setting aside a few extra dollars each week all year long is a great way to ensure that you can afford to comfortably participate in holiday gift shopping,” she said.

If you haven’t started saving yet, it’s never too late to start. Just be realistic and understand that you may not have as much to spend on gifts this year.

Start Buying Early

When it comes to holiday gift shopping, Hunter recommends starting as soon as possible. Shopping before the holiday rush can help you find great deals, especially as retailers clear out their inventory to make way for holiday products.

“As merchants make room on their shelves, you can benefit from lower prices and promotions to optimize your budget while still giving the people on your list the gifts they want,” she said.

And if retailers face supply chain issues this year, it will be hard to find certain products if you wait too long to buy.

Go for Gift Cards

American shoppers plan to spend nearly half (46%) of their holiday budget on gift cards, according to the 2022 Blackhawk Network Holiday Forecast.

“Gift cards are economically resilient and budget friendly because you can buy them in amounts that fit your budget,” Hunter said. “Gift cards can also be sent digitally, which can help save on shipping and postage and avoid postal delays.”

Before purchasing new gift cards, take a look at your wallets, purses and drawers for any gifts cards you haven’t used yet, she recommended: “Gift cards are ‘found’ money that can help lighten the financial blow of holiday shopping and can easily be regifted.”

Take Advantage of Deals and Promotions

The holidays are a great time to look for discounts or promotions.

“Many people who buy gift cards can do so as part of promotions that reward shoppers after the initial purchase with another gift card they can use to treat themselves, buy something they need, re-gift, or even donate,” she said.

Certain apps like Rakuten, Dosh and BeFrugal also offer cash-back rewards for online shopping and may offer deals around the holidays.

Write Thank-You Cards

“Don’t ever underestimate the impact of a thoughtful handwritten card,” Bloom said. “Oftentimes, we feel the pressure of gifting ‘things,’ but the gift of a kind word can go a long way.”

Gifts don’t have to be expensive to be meaningful, she added. For example, a teacher might appreciate a few boxes of tissues for the classroom during the flu season. Raking a neighbor’s yard or babysitting for a friend for a few hours are also great ways to show you care.

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