The holidays means time with family, tasty treats, and hopefully, a few vacation days. For many people, the holidays also mean dollar signs and lots of them! Recently, CNN Money published the results of a poll they conducted where they asked readers to estimate how much money they planned on spending on holiday gifts this year. Over 64% of the poll's participants estimated that they would spend between $400 and $1000 on gifts and nearly half of the people polled said that they started their shopping before Halloween.
These days, it's difficult to know when one holiday season ends and another begins. Before the fake cobwebs from Halloween can be cleared from retail shelves, a slew of festive Thanksgiving, Christmas, and Hanukkah bric-a-brac have already taken their place. Retail cash cows like Black Friday and Cyber Monday have, to some extent, become their own holidays. According to CNN's poll, 55% of participants said that they plan on shopping on Black Friday. Each year Black Friday deals start earlier and earlier. This year is no exception with many major retailers like Target, JC Penney, and Sears opening their doors just after dinner time on Thanksgiving Day. If waking up at 3 a.m. to pry the last $150 flat-screen out of the hands of an elderly woman is not quite your thing, we've got you covered. Check out our helpful tips for reducing your holiday spending this season.
1. Shop the Web
For those of us who aren't adrenaline junkies, hungry for the thrill of the retail hunt, the option to shop in our PJs from the comfort of our own living room is a no-brainer. According to a recent study by Google, over 89% of shoppers will use the Internet for gift purchases and over 60% of shoppers plan to do most of their online shopping during Thanksgiving weekend. Aside from avoiding the crowds, shopping online offers a variety of benefits like being able to compare prices, research products, and check out the product's peer reviews. Online shopping is also convenient for sending gifts to loved ones who live out of state or internationally and with many online retailers offering free shipping, shopping couldn't get any easier.
2. Divide and Conquer
Heading to a friend or co-worker's holiday party? Consider going half on a hostess gift with someone who is also attending the party. By splitting the cost with someone else, you can usually get a nicer gift for half of what you might spend by going it alone. The same could be said for shopping for family members. If you have several siblings who all have kids, your holiday spending can start growing exponentially. Save a few bucks by getting a gift that the whole family can enjoy together like a gift card to a family-friendly restaurant or a family fun pass to the movies.
3. Try Etsy
Everyone appreciates receiving a unique gift with the exception of fruitcakes that are unique, but not in a good way. Consider buying gifts for loved ones on Etsy, a marketplace that sells handmade and vintage items from sellers around the world. You can find everything from custom jewelry and handmade ceramics to "upcycled" cufflinks and vintage toys all for a lot less than you would spend in stores. Plus, you can be sure that you're giving a thoughtful and unique gift. There is also something to be said for the added convenience of beautiful gift wrapping options and low shipping costs.
4. Get Crafty
Making holiday gifts is hardly a new concept but with sites like Pinterest and Craftbits there are a myriad of DIY gifts that are easy and affordable to make not mention, glue gun free! Put down the yarn and macaroni! We're talking about artfully designed decorative bottle stoppers, gorgeous votive holders, and tasty S'more kits. Honestly, have you ever met a S'more you didn't like?!
5. Swap Goodies
Gift exchanges are an excellent way to shave dollar signs off of your holiday spending budget and saving money is something that everyone can appreciate. Many offices have a traditional, holiday gift exchange and even white elephant parties, where people exchange their unwanted, unopened gifts. It's a low-pressure way to say "happy holidays" without breaking the bank. Why not try a gift exchange with the family? It's a good idea to put a price limit on the item to avoid everyone clamoring for that big spender relative that just can't help him or herself when it comes to gift giving. The adults in the family will heave a sigh of relief that they don't have to spend a fortune and kids can learn that there is more to the holidays than being knee-deep in presents, everybody wins.
6. Shop Local
This Saturday, November 30th is Small Business Saturday. Don't forget to support your local small businesses this holiday season. Often times you can still find great deals and unique items that you wouldn't find at larger retail stores. Check your favorite local businesses' website and Facebook page to get a jump on the special holiday offers they may have. If you're in the Columbus, Ohio area, lots of small businesses like The Flower Boutique, Objects for the Home, and Columbus Furniture Revival are offering special holiday deals.
7. Pre-Pay
It's easy to stretch past our comfort zones when it comes to holiday gifting. A little extra stocking stuffer here, a sushi lunch to congratulate yourself on a productive day of shopping there, and next thing you know, you're $200 over your budget. To keep spending in check, consider using a pre-paid card like the Visa Rewards card. Load up your card with the total amount of money you have budgeted to spend and when you run out of money, you're done shopping. Using a prepaid card discourages you from overspending, impulse shopping, and let's face it, "self-gifting". To make sure you get more bang for your buck, beware of prepaid cards that charge fees to purchase the card, use it at ATMs, or for processing certain transactions.
Whether you are on a tight budget or not, creating a holiday spending budget that you are comfortable with is always a smart move. After all, you should be sipping champagne to ring in the New Year not crying in your beer because you went over budget. Good luck, be creative, and remember, when in doubt, it's the thought that counts.
What are your tips for trimming the fat on your holiday spending? Please share them in the comments section below.
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