4 Ways ‘Reverse Gifting’ Can Save You Money
Written by
Cindy Lamothe
Edited by
Zuri Anderson
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Saving money around the holidays seems unheard of. But there are a few approaches that can reduce the burden of expenses, such as reverse gifting.
“Reverse gifting is a revolutionary approach to reducing the financial burden that accompanies holiday gift-giving,” said Kevin Shahnazari, founder and CEO of FinlyWealth. “It involves planning and compiling a list of wanted gifts throughout the year so that individuals avoid the last-minute scramble that often leads to overspending.”
He noted that this method fosters thoughtful gift exchanges while ensuring recipients receive items they truly want and need, maximizing the value of each gift.
Andrew Gosselin, certified public accountant (CPA), personal finance expert and senior contributor at Coupon Mister, argued the same.
“Gift-giving can get expensive, messy and downright stressful, especially when you’re running around in December trying to figure out what to buy,” he explained. “I’ve been there too, and as someone who works with budgets and finances all the time, I can say that winging it last minute almost always costs more.
“That’s why I’m a big believer in reverse gifting. It’s simple: plan ahead, keep a list and make sure gifts actually matter.”
Below are the top ways experts say reverse gifting can save you money.
It Cuts Out the Guesswork
“The idea is this: Throughout the year, you jot down things you or someone else would genuinely want,” said Gosselin. “When something comes to mind, write it down. You’re not shopping yet; you’re just planning.
“By the time the holidays roll around, you already have ideas lined up. It’s like having a cheat sheet for gift-giving, and it works because it cuts out the guesswork.”
Gosselin recommended keeping an eye out for sales during the year, buy when prices drop, and avoid the peak-season markup.
“It’s a huge financial win because it stops you from overspending just to check a box in December,” he said.
It Reduces Pressure To Buy Costly Gifts
“I have seen how reverse gifting transforms the holiday season from a stressful obligation to a joyful opportunity for people to connect,” said Shahnazari.
“For example, there was one family I assisted that adopted this approach by disseminating their wish lists at least a month in advance; it ended up being a harmonious exchange where everyone felt valued, and no one felt pressed to spend or buy something undesirable.”
It Protects Against Reckless Spending
Reverse gifting does not only improve personal relationships, said Shahnazari, but also helps in being financially wise.
“It encourages people to tell others what they prefer or dislike, which limits reckless spending and cultivates an intentional giving culture,” he said.
“In fact, as I have often said, when we invest in understanding what truly matters to those we care about, we cultivate deeper connections without compromising our financial well-being.”
It Prevents Impulse Purchases
Gosselin also pointed out that stress is often a key factor for impulse purchases.
“You’re not wandering through stores or scrolling endlessly online, trying to come up with a good idea. You’ve already got one.”
Whereas, shopping, he explained, feels less like a chore when you’re just pulling from a list you’ve been curating all year. You also avoid falling into the trap of buying “just something” because you’re out of time.
“That’s when people end up overspending or buying things no one really wants.” Gosselin highlighted. “It’s surprising how much this approach cuts down on waste.
“I’ve seen too many gift exchanges where people end up with duplicates, things that don’t fit, or stuff they clearly don’t need. It’s money out the window.”
Gosselin continued, “Reverse gifting makes the whole process more thoughtful. It’s about what actually matters to people — not just what happens to be on a store shelf two days before Christmas.”
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