Gift-Giving Experts: 9 Ways To Give Thoughtful Gifts Without Blowing Your Budget
Written by
Dawn Allcot
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Amber Barkley
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As the holiday season approaches, many people stress out about finding the perfect gift. For shoppers on a budget, showing loved ones how much they care is a balance between budget and creativity.
GOBankingRates spoke with shopping and finance experts to uncover the best ways to give impactful gifts this holiday season without accruing extra debt.
Commit to a Written Budget
Finance experts agree it’s important to create a budget and stick to it. Tanya Peterson, vice president of brand with Achieve, a digital personal finance company in San Mateo, California, emphasized that it’s really important to commit your plan to writing.
“Use an app, a spreadsheet or old-fashioned pencil and paper,” she said. “Develop a list of everything you expect to spend money on. That may include people you want to give presents to, cards, mailing costs, decorations and year-end tips for service providers. Then, start listing ideas for each giftee. To be realistic, be prepared to modify — your budget or your list — once you’ve written everything down.”
Don’t Lose Sight of the List
Peterson advised making multiple copies of the list to keep track of spending.
“Keep one copy of your list in your wallet or bag so that when you see the right gift at the right price, you can purchase it. If you keep an eye out for sales and good deals over the next few months, you can avoid the temptation to buy the first thing you see,” she said.
She recommended setting aside an area to store presents and keeping an additional copy of the list there to check off items as they are purchased.
Seek Gifts With Meaning
The best gifts don’t have to be costly, experts agreed.
“To give a meaningful and purposeful gift that is within budget, search for something that has a story attached to it — either something from a local business near you, a gift that represents an inside joke or a fond memory between you and your friend, or a small item that relates to one of their hobbies or interests,” said Param Jaggi, founder of Agora, an AI search engine for e-commerce.
Andrew Schrage of personal finance site Money Crashers added, “Friends and family will appreciate the thought of any gift you gift them; they aren’t expecting an expensive or fancy gift.”
Use Cash-Back Websites and Credit Card Rewards To Put Money in Your Pocket
Schrage also recommended using cash-back sites like Rakuten and TopCashBack to earn free money. “And,” he said, “if you have credit card points, you can use those toward your purchases, as well — even on Amazon.”
Trae Bodge, smart shopping expert at TrueTrae.com, also suggested looking for coupons and cash-back opportunities on deal platforms. She recommended stacking coupons, cash back and retailer sales.
“One of my favorite holiday hacks is to triple-stack savings with PayPal’s new debit card, which links to your PayPal account. The card allows you to earn 5% cash back, up to $1000, in one category per month,” she explained. “Say you have some apparel gifts on your list. In anticipation of increased spending in that category, choose ‘clothing’ for bonus cash back. Then save even more by using exclusive offers in the PayPal app for your favorite clothing stores, and then save even more with retailer sales.”
Give a Gift Card to a Favorite Store
Savvy shoppers can also cash in credit card rewards for gift cards to stretch their holiday budget.
“If you’re in a pinch but know which stores they like to shop at, those specific gift cards will surely put a smile on their faces,” said Vipin Porwal, founder of the shopping rewards app Smarty.
Also consider purchasing gift cards at wholesale clubs like Costco or BJ’s to get discounts.
Consider Group Gifts
For favorite managers, coaches and service providers, like the postal carrier, consider going in on a group gift with work colleagues or neighbors.
Just make sure you can make a contribution that’s within your budget, Peterson said. She advised gift-givers to plan these group gifts ASAP, as the holidays are rapidly approaching.
Give the Gift of Time or a Shared Experience
One way to make a big bang with a budget-friendly gift is to plan an experience, such as a show or a day trip.
“You can look for discounted experiences on a site like Groupon, or you can make your own experience, like organizing a hike with a picnic or a trip to the ice skating rink and treat for lunch. No matter what you choose, take lots of pictures to commemorate the day,” said Bodge.
Put Your Skills to Use
For many people, the gift of time means more than any material present could. Peterson advised gift-givers to consider their skillset and acts of service they can offer that the recipient might appreciate.
“It could be house cleaning, house maintenance/handyman work, snow shoveling over the next few months or making a plan to help with yardwork in the spring. You might be able to plan an outdoor afternoon for children in the neighborhood,” Peterson said.
She agreed with Bodge that capturing memories makes a thoughtful, budget-friendly gift. “For friends or family who live elsewhere, you could use your phone to put together a fun video!”
Shop Early
The early bird gets the best selection, according to experts.
“Shop online sales and comparison shop, finishing up your shopping as early as possible to maximize sale prices and inventory. Waiting too long means fewer options are available, even if the price might be lower,” said Carma Peters, CEO of Michigan Legacy Credit Union, in a press release.
Finally, when you’ve crossed every item off your list, resist the urge to continue spending.
“When your holiday shopping is finished, leave major credit cards at home if heading to a retail center,” Peters said. “Bring cash for coffee or a treat to enjoy the holiday festivities without making additional gift purchases.”
After all, the holidays should be about spending time together — not about outdoing others on the price of gifts under the tree.
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