I Asked ChatGPT How To Save Money by Slimming Down My Holiday Gift List
Written by
Cynthia Measom
Edited by
Jenna Klaverweiden
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Even though many Americans are struggling financially, holiday spending doesn’t appear to be slowing down much in 2025. Gallup found that shoppers plan to spend about $1,007 on gifts, roughly the same as last year. Households earning $100,000 or more expect to spend $1,479, up from $1,403, while those earning under $50,000 are decreasing their holiday gift budgets to $651 from $776 in 2024.
If you’re trying to keep your holiday budget in check this season, trimming your gift list is a practical way to do it. Here are some strategies to do it, according to ChatGPT.
Set a Firm Holiday Budget
ChatGPT said that before you make a gift list, decide exactly how much you can spend, in total, without going into debt. It explained that knowing the dollar figure upfront will help you determine what you can reasonably afford to buy.
Because it recommended not going into debt, which is great advice, avoid using credit cards as a funding source. Instead, subtract your monthly expenses from your income and see what you have left to spend on gifts. If it’s not enough, withdraw the shortfall from your savings, and make a plan to pay it back over the next year. For example, if you withdraw $600, put at least $50 per month back in savings over the next year to replace it.
Make a List of Everyone You Normally Buy a Gift For
The chatbot recommended that you write down every person you typically give a gift to, including family, friends, children’s teachers, co-workers, neighbors and service providers. It pointed out that seeing the full list can help you more easily spot where you might be overextending yourself.
For example, if you normally buy a $25 hostess gift for every holiday party you attend, consider making a gift or regifting something you received but have never used.
Prioritize Your Closest Relationships
To slim down your holiday gift list, look at the list and circle the names of people who truly matter the most to you, per ChatGPT. Those are the names you’ll keep on your holiday shopping list. For the names you didn’t circle, decide whether to eliminate them or give them a gift you don’t have to buy.
People you might eliminate include co-workers you barely talk to or extended relatives you never see, according to ChatGPT. It added that you could easily save $10 to $50 per person you eliminate and possibly free up hundreds of dollars.
If eliminating certain people from your gift list isn’t possible, consider “free” gifts. These could be items that you receive when you purchase a “buy one, get one free” special, ones you regift or ones you make from items you already have.
Suggest Doing a Group or Family Gift Exchange
Another way to trim down your holiday gift list is to suggest a name-draw or Secret Santa exchange instead of buying individual gifts for everyone, according to ChatGPT. It explained that each person buys one gift for another person within a set budget, such as $25, which can cut costs dramatically but allow for gift-giving fun.
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