What do you think your average spend is for gifts for your family and friends each year? I was fairly shocked to be honest when I worked out recently that I spent just over £800 last year on gifts for other people (Christmas, Birthdays etc). I didn’t have a budget back then so I didn’t keep tabs on what I was spending, I just thought I wasn’t spending that much. Actually I hadn’t spent that much compared to earlier years – gulp!
It wouldn’t be right for me to say spending that £800 on gifts was a waste of money because I’m sure some people loved the gifts they received from me and I loved spoiling them… but I could have had a little bit less debt than I do right now if I hadn’t spent so much money in this area.
The thing is, if you’re in debt and focused on paying it off, the last thing you should be doing is spending a lot of money on gifts even if you really love buying for other people. Especially spontaneous spending on gifts as that just upsets the apple cart and distracts from what’s important: paying off debts! Yep, the money that you’re spending on gifts could go towards paying off the debts and over time it would really help make your journey to debt freedom that little bit shorter.
But you know how it is, things crop up. The birthdays of your family and close friends come around really fast and before you know it, it’s Christmas again. Sometimes you can’t avoid spending on gifts unless you want to look and feel like a complete Scrooge. And it’s hard not to buy for children, especially if you have kids of your own and other people buy presents for them. That can be rather awkward. 🙂
Buying gifts without busting your wannabe debt free budget
If you really want to get that special person something, you can avoid taking the wind out of your debt blasting sails by adapting one or more of these approaches.
1. Hand-make gifts for friends and family
If you have any crafty skills such as knitting, feltmaking, sewing, carpentry, painting, jewellery-making, or scrap booking, you could try your hand at making a gift for your loved ones! You can pick up materials like wool, wood and beads at craft fairs and even car boot sales at a very fair price. The main cost here would be your time.
Even if you don’t have crafty skills, there are easy beginner project tutorials on the internet which are suitable for anyone. I knitted a few easy scarves and hats for birthdays at the beginning of this year, which my family members politely accepted despite a few holes where I missed a few stitches here and there! One of the hats is being used as a tea cosy now. Versatile gift or what?!
2. Put aside a pot of money for gifts
Add a section to your monthly budget for gifts. Use a separate savings account, a piggy bank, or even an envelope where you can put aside some cash each month to spread the cost of buying presents throughout the year. I don’t put much aside as nearly all of my spare money goes towards debts but even a little pot of money could get you out of a sticky gift giving situation!
3. Use the sales
By planning ahead and really thinking about what you want to get for that special person, you can make use of seasonal sales and save your gifts for later. I try to do this for children’s birthday presents – my daughter is invited to other children’s birthday parties and gift buying can really add up. You just can’t turn up to a kid’s birthday party without a present for the birthday boy or girl! It’s an unwritten rule in the world of parenting.
4. Prioritise the people you’re buying gifts for
Sounds a bit mean doesn’t it? But in all honesty, some people aren’t bothered about receiving gifts although I’m sure they appreciate the sentiment. Why not just buy for those people closest to you? And if you can tell some friends and family about your debts, they’ll probably ask you not to buy anything. Some of our trusted friends who we were brave enough to tell now insist on us not buying gifts. We have an arrangement where we buy for the kids only. It’s so much easier!
5. Balance gift buying with debt payoff
      If you receive any money yourself in the way of gifts, you could use that to pay off your debts. Yes, it’s hard to do sometimes as you probably want to treat yourself on your birthday but using the money to pay off debts kind of balances things out. Another way of balancing the books is to plan ahead as to how much you’ll be spending next month on presents for example and try to earn extra income to replace it.
     It’s funny how there seems to be one month of the year for most people where they find they are buying for several people’s birthdays. They all seem to come at once don’t they? My killer gift buying month is in April – 5 birthdays for friends in that one month alone.
     What do you do in terms of buying gifts for others when you’re trying to pay off debt or save for something?
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- Â Planning a cheap birthday party for kids.
* Photo from Stock Xchng (Happy Birthday 2)
38 Comments
I would aim towards the homemade or cheaper but more meaningful gifts. Also, if you come from a big family then maybe suggest drawing names so you only have to buy one or two, but you can spend a little more on it.
Budget and the Beach recently posted…Why I stopped looking for a full time job
Great idea! Buying gifts for a large family can really put a drain on anyone’s finances. This way, everyone would get something (unless someone is unlucky!) but no need to break the bank.
I hate to say this because it will probably make me look cheap, but that’s OK. When it comes to gift giving, I think it should come second to savings and debt payoff. Now, if you have the money, by all means, go buy gifts. But, if you don’t have the money, make the gifts! Thanks for the great read!
Josh (CNAFinance.com) recently posted…How To Make A Budget Spreadsheet That Makes Budgeting Fun!
Lol! I don’t think that makes you look cheap Josh! Just honest. 🙂
Last year when we were really focused on debt, we priotizied our gift buying. We used to buy his nephews, nieces and little brother and sister (they are all under the age of 13) tons of presents. However, last year we limited it to 1. They all receive so many presents that none of them even noticed.
Michelle recently posted…A Wedding and $2,715 in Extra Income
It’s so easy to spoil kids isn’t it! I really like the idea of just buying one gift for them. Hopefully they will appreciate it more!
“Prioritise the people you’re buying gifts for” has been the most helpful for me. I don’t buy gifts for friends, just for my family and J. I also buy my Christmas presents early in November when many stores are trying to get people into the holiday spirits so they have friends and family sales then. Sometimes I buy a little something for myself during those sales too 😉
Girl Meets Debt recently posted…GPS: Saving My Relationship One Roadtrip at a Time
Sometimes we deserve a little treat! Yes, I’ve whittled down my gift list to just family and the children of friends now. It’s a lot easier although I do have to put money aside for it.
Its hard buying gifts when you’re in debt. I prefer to make my own if possible. Its makes life easier.
Debt and the Girl recently posted…20 Truths You Learn in your 20′s
Totally agree. Plus making gifts is fun!
We had a poor experience one Christmas, when we were in the middle of our mortgage payoff period. We explained to family that we didn’t want to really exchange gifts, and we’d instead be giving to charity in their names (giving them a card showing the ducks/chickens/medicine that was going to families abroad in their name). It did not go over too well. We learned our lesson and simply set a small Christmas budget, and told others what our gift value range would be ahead of time.
I love your list, especially the one about a hand made gift. They’re the best sort.
Done by Forty recently posted…Budget Porn, Sexy September Edition
Oh what a shame! I would have loved a gift like that but I know my parents wouldn’t be too pleased. They like having something to open even if it’s just a box of chocolates!
I think I prefer ideas 2 and 3. I think I mentioned how crap I was at making things, believe me no one will ever want it, lol! I can totally see myself setting a budget for gifts and starting to save early, also there’s nothing wrong with getting items on sale. What’s the point in paying the full price if you can get it so much cheaper?
I don’t give a lot of gifts these days. I paid for Christmas last year and had my best friend over who was unemployed at the time and couldn’t really afford to buy me a present, chip in for all food (and there was A LOT of food as he was over for 3 days) and pay for his train fare (he doesn’t live in London). So that was kinda a gift to him 😛 Other than that, no gifts this year…well, I treated my Mum to a 2 nights luxury hotel stay in Sorrento, but I could only afford it because this was given to me as a gift through work 😛 My family understands my debt situation, and they are totally okay not receiving gifts from me. I do want to turn this around and I will definitely get them something nice this Christmas (well, New Year, that’s what Russians celebrate the most) 😛
Oops, I got a bit carried away writing this, I love talking about gifts, lol!
Eva @ Girl Counting Pennies recently posted…My Love Affair with Debt (We’re Breaking Up)
Carry on getting carried away! I love reading long comments like this, it gives me an insight to the person commenting! Although I sort of feel like I know quite a bit about you anyway Eva! 🙂 That’s great that your family know about your debt and don’t want you to buy them anything – just the kind of support you need when in debt. Though I understand why you’d want to get them something at least.
I think homemade gifts are very special and shows that you spent your time making something. We got some handmade gifts for our baby shower a few months back and I found them very special…I think spending your time often shows more thought than just buying something. Another tip I would add is re-gifting. Some people are against this, but sometimes you get gifts you really don’t want or have any use for…so why not give it to someone who may use it. I wouldn’t re-gift something that was just a bad gift though!
Andrew@LivingRichCheaply recently posted…Week in Review
Yes I think so too Andrew – homemade gifts are the best! I love the fact that someone has spent time making something just for me. I’ve never done re-gifting but that sounds like a great plan. No-one would know and could benefit from it!
Great post!!
I choose #4 on the list. Since friends and family know that I don’t have too much money to spend on holidays and birthdays, I simply give each of them a card and a hearty handshake or kiss on the cheek depending on their gender 🙂
That being said, I do make it a point of getting something for their children which will usually consist of coffee shop gift certificates enough for a hot chocolate and yummy treat. It’s always a hit no matter how many time I’ve done it for them in the past.
I also don’t expect any gifts for myself since it is about giving and making others feel special. Although when I do get gifts, I like it as well 🙂
Take care and all the best.
Lyle
Lyle @ The Joy of Simple recently posted…What A One Gig MP3 Player Taught Me About Living!
Thanks Lyle! 🙂 A card and the sentiment does the job nicely doesn’t it! I think we sometimes put too much pressure on ourselves to get a great gift when actually the sentiment of someone thinking about us is enough. I like your idea of hot chocolate gifts for children!
Last year, I crocheted some headbands for my girlfriends and girl cousins for Christmas. I’m always looking for more ways to save money when it comes to gift giving!
Lisa E. @ Lisa Vs. The Loans recently posted…Links Lisa Likes – 9/7/13
I really want to learn crochet! Is it easy to learn? That’s a great idea. Have logged and noted!
It’s pretty easy! I first learned when I was in high school – my auntie bought me a starter kit with a book that helped me learn how to do the basic stitches. You should learn! Once you know how, gifts become soo much cheaper!
Lisa E. @ Lisa Vs. The Loans recently posted…Weekend Recap: Koinonia
I’m definitely going to give it a go! Are headbands quick to work up? When I knitted scarves earlier this year, it took AGES!!!
Headbands took me a couple of hours. Scarves take much longer!
Lisa E. @ Lisa Vs. The Loans recently posted…Don’t Be a Complainy-pants
Thanks Lisa!
I rely on #1 and #2 primarily. We split every bit of income into various buckets, one of which is long term savings, which includes gifts. This way we always have money set aside, and we know how much. While we’re still paying down debt, investing for the future, etc.
For the homemade, we have an herb garden, so we’re giving herbs from our garden to the cooking types. Plus I’ve been experimenting with making my own red wine vinegar. It’s absolutely spectacular, like nothing you’ve ever tasted, so the folks at the top of my list are getting a small taste of that in a nice bottle.
Jack recently posted…The Minimalist Guide to Cashback Rebates (or Coupons Are For Suckers)
Wow the herbs and red wine vinegar sound great! I’d love to try making jams and chutneys! I’ve been saving old jam jars just in case I ever get around to it! 🙂 Another idea logged and noted thank you!
Great suggestions! I think the best gift I ever received from my husband was a scrapbook. He took several important mementos – movie tickets (from long ago), notes we’d left each other on the kitchen counter, and a few photos and put them in an album. I cried when I opened it, and then I laughed. He put two menus from a wedding and the caption read “our wedding.” I politely said, “We didn’t have baked chicken at our wedding. That was Meg’s wedding.” We got a real laugh out of that. Now, we don’t buy each other any gifts. We don’t want “stuff” taking up space.
As for family, we buy for parents and nephews, not siblings. They are all trying to save too. Sometimes when you buy people things, they feel obligated to give a gift in return. I’ve found that being the first to not buy something really relieves pressure and puts people at ease!
Tammy R recently posted…Knowing When It’s Time to Move
Thanks Tammy! Wow that’s so romantic! What a lovely gift to receive from your hubby! Yes I know what you mean about relieving the pressure on other people, I think lots of us could actually do without buying gifts. 🙂
I’m a big fan of the Holiday Club accounts. I’m not sure if your bank offers them, but essentially it’s an account that mails you a check in October for the amount you deposited, plus interest. My husband and I put $20 each week in the account. After setting a strict per-person gift budget, we have money left over to use for birthdays for the year!
Alexandra @ Real Simple Finances recently posted…Financially Savvy Saturday, Third Edition
Hey that sounds great! I’ve never heard of Holiday Club accounts, I’ll check out whether we have something similar. Thanks Alexandra!
To Lisa—I’m going to crochet a hat this year! Have to learn how to read patterns, though.
These are all such great tips! One thing we do is buy gifts throughout the year (for the specific people in our lives) and then stick them in a gift box. When Christmas rolls around, we’re already pretty well stocked. We start this sometimes as early as January. This way November/December isn’t quite as hard.
femmefrugality recently posted…Financially Savvy Saturdays Third Edition
Another great idea – thank so much! I’m useless at remembering to stock up – I really need to keep my eyes open and look out for bargains all year round. 🙂 P.S. I’m going to try crocheting a headband. Never crocheted anything before so the smaller it is perhaps there’s less chance of it going wrong!
Christmas is not a problem for me because we pull names and I have to buy for one person. This year, I decided to do surveys, so I have been giving gift cards for presents. No money out my pocket except the time I have devoted into doing them.
The Frugal Exerciser recently posted…The Fitness Model Workout
Thanks for stopping by! 🙂 Do you mean handmade gift cards? Great idea!
No gift cards like for Sports Authority, Williams and Sonoma and etc. Check out My Surveys and look at their rewards for doing surveys.
The Frugal Exerciser recently posted…Affordable Paleo Diet Tips-Part 2
Ok thanks! 🙂
Great tips! It isn’t always easy but I remind myself that gift giving is optional, even though it doesn’t always feel that way. I set a budget and prioritize, like you recommend. It makes it easier when you know who you are buying gifts for and can pick things up throughout the year when you find something on sale. I also believe with adults that most of the things we want are generally more expensive and not reasonable gifts. So sometimes it makes more sense to instead say to friends – let’s not exchange gifts because what I’d really like – is to just spend time with you. Let’s go for a walk or meet for coffee or lunch – whatever your budget can swing.
Shannon @ The Heavy Purse recently posted…Part 3: How to Talk to Kids about Money (ages 12-18)
Thanks Shannon! That’s definitely something I’m trying to say to friends re not exchanging gifts. More and more of my friends having children now, so it seems to make sense to just buy for the kids instead. Much easier and less expensive.