Photo by Artem Saranin
Christmas tends to sneak up on me every year. It’s a shame that it can’t be on the same day every year so I could plan for it….oh wait….lol. This is the first year in a long time that I actually feel ahead of the game though. I was super diligent in socking money away each month into my Ally savings account so I wouldn’t have to go into year-end debt paying for the gifts I need to purchase. I’ve even got a few gifts purchased already…something else that’s rarely accomplished at this stage of the season.
The Tight Years
Living the single mom life definitely had me struggling money-wise some years. Throw in quite a few years where we were on a high-deductible health plan and I was faced with the prospect of paying off Christmas gift bills while juggling $900 a month insulin bills until that deductible was met was stressful. Let’s just say that the idea of having to pay for a hospital bill was probably the only reason I didn’t have a stroke a couple of those years.
My finances have eased quite a bit since then. I know for many though, that trying to provide a nice Christmas for your family is might still be a financial struggle. Every parent wants to make sure their kids have an awesome Christmas and plenty of gifts under the tree on Christmas Day. Here are just a few tips I’ve accumulated over the years to cut some of those costs.
Make the List and Check It Twice
Let’s get serious. I’m one of those people who LOVE to give gifts. I especially try to figure out what people really want and/or need. And yes, sometimes a gift card is a perfectly thoughtful gift for someone.
If money is tight though, you have to whittle down the list. Your kid’s teacher and your neighbor and the paperboy will survive without a gift (I know, no one gets the paper anymore so congrats, that’s one less person on the list!).
If you have a big family and they generally buy everyone gifts then suggest drawing names. Each adult draws an adult name and each kid draws another kid’s name. Don’t feel bad suggesting this either, you might be surprised at how little flack you get over it since it will be saving everyone money!
You could also give a family gift instead of individual gifts. Maybe a gift subscription to the zoo or local museum or a gift card for their favorite restaurant or snack place.
If you’re adamant about still getting your friends or neighbors or anyone extra a gift then why not arrange to meet up after the holidays. You could schedule a lunch date or movie night. And if you still feel the need to purchase an actual gift, you can at least grab those after-Christmas sales by meeting after the holidays.
Think Used/Secondhand
Video games were a hot item when my kids were younger. I was able to purchase a lot of the games used, whether it was online or somewhere like Gamestop. My kids are grown now so it’s been awhile since they’ve requested video games and I think a lot of the games are bought digitally now, which makes it harder to get discounted prices but watch the sale ads.
Check out places like Facebook Marketplace or Nextdoor. There are plenty of people selling items trying to make a little cash of their own for the holidays. This is usually someone local so you’re saving on shipping costs and you can sometimes negotiate prices. Just be sure that you’re meeting the seller somewhere safe. This is also a good way to declutter and make a little Christmas cash of your own. Again, safety first though!!
Subscriptions
I touched on this a little earlier. One of my mom’s Christmas presents for the last few years is a yearly subscription to one of her British television streaming services. Last year I added them to my Netflix subscription as well as part of their Christmas since Netflix got all Christmas Scroogey and cracked down on their password sharing. Dear Netflix…I still have an issue with this…if I’m paying for three streams then why does it matter where they are being watched from? But I digress….that’s a battle for another day.
Michael got a Hello Fresh subscription a few years back from a friend that he really enjoyed. I may get him an annual subscription for a grocery store delivery service this year since he despises going to the store.
My aunt has gifted me our favorite Magazine the last couple years. Finding the newest edition each quarter in my mailbox always makes my day!!
Subscriptions are great because it’s an ongoing gift they can enjoy throughout the year. Sometimes you can pay for it monthly, like my parents Netflix, which helps spread out your cost. Sometimes they have to be paid annually but you can get a holiday deal or some bonuses at Christmas time.
Set Expectations
Here’s the thing! Listen up, I’m about to say something smart. If money is tight and your kids are even remotely grown/pre-teen, etc., they are old enough to hear “hey, we’re still going to enjoy a fabulous Christmas this year but I need to scale back just a bit”. There’s no shame in this. If they’re really young, they really don’t need a thousand toys when they’ll probably just play with 2 or 3 anyway. And a bonus here, is that you’re not setting a ridiculous precedent for future years.
If your kids are totally grown then I’m sure they really don’t want you going into debt for them. Have the conversation! Hopefully you’ve raised amazing human beings anyway and they’ll be happy just enjoying your company for the holidays. If they aren’t amazing human beings and they want to be crappy about it, then they’re on the naughty list anyway and don’t deserve presents so Win-Win!
Take Advantage of the Free Stuff
One of my very favorite Christmas traditions is driving around with my kids and/or friends the last few years looking at the amazing Christmas displays in our town. I’ll tell you what, our city has some creative individuals. There are a few homes each year that have their Christmas lights set to crazy music displays. We pile into someone’s SUV, make the required Starbucks stop for our festive drink refreshments, and hit the road.
Many towns/cities have free holiday events such as holiday plays or Christmas Carols. Check out your community listings or local school or college boards.
Host a movie night at your place. Pop some popcorn and have the movie snacks ready and watch your favorite holiday movies (Elf, The Polar Express, A Christmas Story, and of course Charlie Brown’s Christmas are some of my favorites). Or better yet, turn on the Hallmark channel and settle in for hours of wholesome Christmas tales.
Prep For Next Year
After the holidays are over, take a few steps to ease the stress for next year’s Christmas. Pick up some discounted wrapping paper, napkins, holiday cards, decorations, etc.
Set up a savings account designated solely for Christmas and make a monthly deposit into it. I use ALLY bank because they have a decent interest rate and you can set up various buckets for your saving account. I usually start thinking/panicking about Christmas money around August but at the start of 2024 I built savings into my monthly budget for Christmas, travel, my emergency fund, and my home repairs fund. I’ll probably still go over, despite what I’ve been preaching to you in this post, but the majority of my Christmas list will be funded with my Christmas Ally fund and it’s a huge relief.
Again, please remember the reason for the season. Don’t put yourself in debt or even more debt just so that you have a packed Christmas tree. That’s not a good lesson for your family anyway. Enjoy the time together. Like I said earlier, I do love picking out gifts for people but even more, I just love that it’s the time of the year that we do tend to prioritize spending time with friends and family and that’s my favorite part of the season.
