Like many holiday gift-givers, I often find myself stressing over what to buy for my loved ones and how to stay within my budget. I love the season, and I get great joy from giving presents. But I know firsthand how that joy can also lead to financial stress. This season may prove even more challenging with the uncertainty of inflation and a potential recession.
As Branch Manager for OnPoint Community Credit Union in Sellwood, I have had a front-row seat to the effects of the financial rollercoaster over the past several years. The recovery has been a struggle for many, and they are now facing new financial hurdles brought on by inflation.
Here are my top 10 tips to help people in our vibrant and generous community spread joy this year without breaking the bank:
- Create a holiday budget and stick to it: Have a serious talk with your family about what you can spend this year. Create a holiday budget by writing down and adding up every holiday-related expense. If the total is more than the number you initially wrote down, prioritize your list and cut where possible.
- Curtail non-holiday extras now: Review your current spending. Can you hold off on dining out, delay large household purchases, limit travel, or pause regular nights at the movies, concerts, or sports events? Doing so could free up a little extra cash for your holiday budget.
- Cull your gift list: Determine gift-giving strategies with the people you’ll be spending the holidays with in advance. Cull your list by buying gifts only for children, drawing names, or regifting in exchange for second-hand items. Be honest with the people in your life about wanting to pare back this year—they will likely be thinking the same.
- Want, need, wear, read: Consider limiting the number of gifts you give your children by getting them something they want, something they need, something to wear, and something to read. Determine how much you can spend on each child when you create your holiday budget and allot a specific amount to each category. Gifting in this way will ensure you don’t break your budget and help your kids be more mindful of what they already have.
- Shop smart, not early: It seems logical that consumers who shop early in the season will spread their purchases out, find bargains and ease budget pressure. However, Deloitte found in 2021 that those who begin shopping in October or earlier spend more than those who hold off until Thanksgiving, when many of the sales begin. Start monitoring prices on must-have gifts early so you’re ready to pounce when a good deal arises.
- Get creative: Look for treasures at a local vintage store, flea market, or thrift store. Regift presents that may not have suited you to someone who will love them. Are you crafty or artistic? Skip the expensive checkout at the mall or online and make your gifts at home.
- Send cards: Replace gifts with thoughtful holiday messages; that way, you can still send holiday greetings to those who have fallen off your gift list. Slipping a photo or two of your family on the card can make the special delivery even more meaningful.
- Donate to a non-profit on someone’s behalf: As non-profits work tirelessly to meet a growing need, consider donating to a non-profit organization on behalf of your loved ones or colleagues instead of purchasing material gifts. Sending them a card letting them know you donated in their name will not only brighten their holiday but also impact a worthy cause and maximize your tax deduction.
- Establish new traditions: Shift from buying gifts to hosting meaningful get-togethers that don’t require you to plan a big meal. Try hosting a potluck for dinner or a cookie exchange in the afternoon with coffee and hot chocolate. Organize a book or an ornament exchange. They don’t need to be complicated or perfect, just something that will create fond memories.
- Plan for next year: Open a checking and debit account specifically for vacation or holiday spending and set up an automatic deposit from each paycheck. Hide it from yourself in your online banking system so you’re not tempted to draw from it over the year. You’ll be surprised how quickly the deposits add up, giving you a cushion as you enter the next holiday season.
The holidays should truly be a time of cheer and joy, not stress. By setting a budget, being realistic with ourselves and others about what we can afford, and finding new ways to share joy and show appreciation, I believe we all can enjoy the true meaning of the holiday season.
If you’re still unsure where to start, my team and I would be happy to answer any questions. Stop by and see us anytime. 2022 marks our 10-year anniversary in the wonderful Sellwood neighborhood, and we’re so grateful for all of your support!
Tara Cunningham is the Manager of OnPoint Community Credit Union’s Sellwood Branch.