9 tips to help ease your holiday spending stress

With the holiday season fast approaching, many people are starting to question how they’ll spend their time and money.

A lot of the advice you’ll find about rethinking holiday spending just doesn’t apply this year. Giving experiences, taking a trip instead of gift-giving, potluck dinners, cookie exchanges, and big family get-togethers won’t be realistic options for everyone right now.

Below are nine tips to reduce your holiday spending stress.

1. Make a holiday spending plan

No matter what the circumstances are, coming up with a holiday spending plan is a solid idea. You need to know what you can spend and where that money needs to go. Here are a few tips for coming up with a realistic holiday budget:

Figure out how much you can really afford

Be honest with yourself about what your holiday spending will look like this year. Set a weekly, bi-weekly, or monthly savings goal and stick to it. Budgeting apps like Mint or YNAB can help you track and plan your spending so you don’t go over budget.

Don’t forget about things like shipping, wrapping paper, stamps, etc.

The holidays are full of hidden costs. Or they’re not exactly hidden but are often overlooked.

If you’re sending cards out, factor in the cost of stamps. Don’t forget that it will cost a bit to ship a box full of gifts—you can save money by having things bought online shipped directly to gift recipients. Wrapping paper is a small expense, but it adds up if your finances are stretched. You can get creative here and use newspapers, fabric, reusable bags, etc.

Prioritize your spending

When you’re making your gift list, prioritize it. Your kids and parents will probably be at the top of the list, close friends next, and coworkers last. It’s 100 percent okay to cut out people you would normally buy for, and there’s a good chance they’ll have to do the same.

Avoid debt

This one is huge: don’t go into debt to “afford” the holidays. This is advice you should follow no matter what’s going on in the world. If you can’t realistically afford presents, the people who care about you would rather you stay on solid financial ground. I promise.

2. Shop earlier

My wife is really good at buying gifts early on, and not just for the holidays either. I will inevitably forget someone’s birthday is coming up, and my wife is ready with a wrapped gift that she bought three months earlier.

Besides not having to run around last minute and buy things, buying early helps you stick to your holiday budget. You won’t be tempted to overspend because you didn’t have the time to come up with a better or less expensive option.

Shopping early also leaves you more time for shipping so you don’t feel like you need to spend extra for rush delivery. You’ll also miss the crowds of last-minute shoppers . . . pandemic or not, this is a huge perk for me.

3. Go in on joint gifts

There’s a good chance that others close to you are also experiencing some financial stress this holiday season, and pooling your resources to give a joint gift can be a good way to reduce some of your stress.

Reach out to your siblings to see if they want to go in on that Instant Pot your mom has been wanting. Maybe your dad has wanted a nice new electric razor; go in on that together.

Just remember that joint gifts don’t always have to be bigger and more expensive—the point is to save money.

4. Don’t be afraid to buy and give used

I know some people have strong feelings about giving used things as presents, but this year we’re having to rethink the way we do practically everything. There’s no reason why you can’t buy used books as gifts, gently used clothes for your kids, or secondhand toys and video games.

There are so many online marketplaces for used things right now that it’s easier than ever to find quality used goods. Here are a few good options for buying used:

• Local buy-and-sell groups on Facebook.
• Decluttr sells refurbished electronics, video games, and even Lego sets.
• ThredUp and Poshmark are popular places for gently used clothing.
• Play It Again Sports specializes in used sports equipment and workout gear.

5. Buy local

I’m sure you’re aware that local businesses are hurting this year more than ever. Spending some or all of your holiday budget locally is a good way to help your community. You can often find unique gifts while helping to ensure that some of your favorite local businesses can make it through this tough time.

6. Redeem your credit card points

Using credit cards for travel hacking has become really popular over the past few years. It’s the practice of opening a new credit card to earn points that you can redeem for less expensive airfare or hotels.

But with travel off of the table for many people, you may be able to redeem your credit card points for other things, like gift cards or cash. Most credit card points work out to 1 point = $0.01. That doesn’t sound like a lot, but if you’ve been saving points up for a while or just earned that sign-on bonus, you could easily amass tens of thousands of credit card points.

I did a quick check with one of the cards I use for travel rewards and was surprised to see how many different redemption options there were. Cash was one option, but there were also over 100 different gift card options, or I could use my points to shop on Amazon.

7. Give practical gifts

The financial impact of the pandemic has forced some people to forgo spending money on even essential items. We’ve had to rethink wants and needs more than ever, and some of the things we traditionally considered needs have become luxuries.

I was talking to someone recently who said their mom always gives them socks and underwear for Christmas. Normally, it wasn’t a big deal, but this year they were looking forward to a fresh pack of socks.  

When I was paying off my student loans and putting every extra dollar I had to spend toward destroying that debt, I would have loved some new socks. Seriously, I went months wearing socks with holes in them because new ones seemed like a luxury.

There are all kinds of practical gifts you can give this year, like:

• grocery gift cards
• kitchen supplies
• subscription to a food delivery service
• a gift card to Instacart
• a Netflix or other streaming subscription
• a gift card to a local coffee place or Starbucks

I know practical doesn’t seem like fun, but it would be a welcome gift for anyone who’s struggling financially.

8. Donate if you can

Because COVID-19 has affected so many people this year, places that help their community through financial donations are hurting as well.

I know donating might seem like an “extra,” but you can turn donations into thoughtful gifts for your friends and family.

If you have a pet-loving friend, consider donating in their name to a local animal shelter. You can donate goods or cash to a women’s shelter in the name of your mom or sister. Donate to a food pantry, children’s homes, or any other causes that are important to the people you care about.

There are also international foundations you can gift through. Heifer International is a well-known group that aims to eradicate hunger and poverty in developing countries. They have a gift catalog where you can buy shares of a goat, a flock of chickens, trees, and more in honor of someone.

Kiva.orgopens in new window is an international lending platform where you can donate money in someone’s name to entrepreneurs in developing countries. The money you donate is used as a loan, and once the entrepreneur has their business up and running, they pay back the loan in small increments that can be reinvested. Here’s an ideaopens in new window of some of the loans you can help fund.

9. ‘Priceless’ gifts go a long way

This is the year to pull out your crafty or maker skills. Handmade gifts show that you’re willing to give one of the most expensive things we have to offer: our time.

If you can knit or crochet, consider making hats or scarves. You can bake cookies or bread. Spend your time on artwork, make a film collage of photos and videos from the year for your parents, have your kids make ornaments, etc.

Even something as simple as a nice framed photo of your family will go a long way. Because we can’t spend time together this year like we normally would, putting your time into something special can fill that void.

Remember, we’re all going through this together

You’re not alone this holiday season. 2020 has been a hard year for millions of Americans.

There’s a good chance that someone on your gift list is also questioning how they’ll afford this holiday season. And, I promise that the people you love and care about will respect your need to budget this holiday season.

Small acts like a handwritten note or FaceTime with your friends and family will go further than you think. Expressing your love and care is what really matters this year.