As we approach the holidays, I want to share some conversations I have been having around gift giving for the holidays.
It’s so easy to get caught up in wanting to give gifts, even little trinkets to everyone – that we sometimes unknowingly end up spending way more than we intended.
As you start to assess gift giving for the upcoming holidays, I would encourage you to create a list of who you’d like to gift something to and the price you want to spend on it. As I will always encourage, create a budget for what you want to spend. We want to ensure that after the holidays, you do not end up with a credit card bill that will take months to pay off.
As you review your list, consider seriously, does this person actually need a gift? If not, take them off the list.
Would this person rather you spend time together – or to do an activity together?
As an example, I have a few friends and they would much rather get together in person than receive a gift. One of them would prefer for me to cook a meal together with her family – so, instead of a gift exchange, we will spend time together laughing and cooking together.
If you are attending a family gathering, does each person need to receive a gift? Or can you do something more meaningful with a gift exchange and cull your list to those who need something?
Over the years, I have received things and bought things and I am now in the process of decluttering my home and it is hard work as I did not realize that I have accumulated so many things over time.
For younger family members who you would like to encourage to save, can you contribute to their bank account or to a 529 Plan. A savings account vs a 529 has different uses. I allow my daughter to buy things using her savings account, so instead of receiving a gift that she may use once, she can then choose something that she really wants and purchase it herself. This is teaching her how to make decisions and choosing whether she wants to use from her savings or get creative with how she spends.
I see posts all the time of parents joking that they buy expensive gifts for their children and the child would rather play with the box it came in. Especially for little kids, keep the gift giving simple.
A 529 will help with future educational costs. It’s important to understand some of the nuances around 529 plans, but it’s a great tool to gift for someone who you want to invest in their educational future. Even small gifts over time can add up.
Use the opportunity for sales. The holiday season will be filled with sales. If there are things that you need, that you were going to purchase anyway, use this time to purchase them. Do not purchase items just for the discounted price you will be receiving.
This is not an exhaustive list. What are some creative ways that you plan on sharing things that matter with friends and family that you want to do something for, but not necessarily buy a gift?