Christmas is coming up on us fast, and if you haven’t started saving for it yet, you should. Americans and Canadians alike are spending ridiculous amounts of money on Christmas gifts every year, and it seems like the frenzy is starting earlier and earlier every year.
Although spending on Christmas presents isn’t as crazy high as it was in the early 2000’s before the economic slow down, the average American still spent $646 on presents in 2011. $646?! That’s a month of extra debt payments! It seems that even though wallets are getting thinner every year, the pile under that tree keeps getting bigger, and it needs to stop.
Now, I’m not going to go all Scrooge on you and act like Christmas is just another example of frivolous spending and we should all do the morally superior thing and just spend time together, and that should be enough.
I get it, giving and receiving presents is fun. But does it have to be so much? A couple of presents would make me more than happy, and only having to spend money on a couple of presents, would make me even happier.
My extended family has made a bit of a note on the excessiveness of our Christmas gift giving over the last few years and we’ve collectively taken some steps to reduce that burden. We still give gifts, and we still make it a priority to spend time together, but with a little creativity, we’ve managed to make our Christmas a little less about the presents, and a little easier on the budget. Here are some of the changes we made:
Secret Santa
I have several sisters and instead of buying each of them a small gift of limited meaning and value, we trade names and are able to put more time into a nice gift for one person. There was a little resistance to the idea initially, but it’s really caught on as a great way to reduce the number of presents we have to buy while still being able to give a nice gift. We used to draw names out of a hat, but we’re so scattered across the country at this point that we’ve resorted to an electronic secret santa picker.
Yankee Swap
I think every household has a version of how to play Yankee Swap, but this is how we play it: Everyone brings a gift, they all go into a pile. We are then all distributed an even number of playing cards (the whole deck divided evenly). There is a card picker who will pull cards from a separate deck. If your card is pulled, you can either take a gift from the pile, or steal an already opened gift from someone else. Once your cards are gone, you’re out of turns.
There’s a bit of an art to making this type of game fun. If your group of people has a history of getting into fist fights over a game of monopoly, then this type of present swap might not be for you. To make sure the game is all in good fun, the criteria for the present is: It must be worth around $10, and must be something you already had in your house – it’s a great game for regifting and it keeps the value of the presents low enough that the focus is more on the fun and less on the material worth. If someone introduces an iPod into the mix, be prepared for the gloves to come off.
Gift Cards
Some people might think that gift cards are tacky, but I personally love them. I don’t think they’re impersonal at all. In fact, I think they’re the most useful thing you could get a person (provided it’s to a store they actually shop at). I love useful gifts, I love receiving gifts that are not only thoughtful, but is something I’ll actually use! If I’m really worried about being perceived as impersonal, I’ll include a personal note about how the gift card is meant to go towards the value of a more expensive item, so that the gift receiver can get something he or she really wanted but couldn’t quite afford.
More Fun, Less Stuff
Being the minimalist that I am, I’m always happy when less stuff makes it’s way into my home. When it comes to gift giving, as much as I like gifts, I’d rather have fewer gifts that have had some real thought put into them, than a bunch of stuff that I don’t need and am never going to use.
How about you? Do you feel like Christmas is overly commercialized?
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Allison says
October 12, 2012 at 4:24 amI don't know why gift cards are considered tacky. If its what someone wants, then get that for them.
I agree there are times that I think Christmas is so commercialized. It is not going to hurt my feelings if an office mate does not get me a present. I would rather them give me a hug than spend 10 bucks on something I don't want, and ten bucks they could have saved and used for themselves or on someone else. I really hate the junk/have to filler gifts we think we have to buy each other.
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Jordann says
October 12, 2012 at 10:56 amI agree, I'm glad my office doesn't do a gift swap, that would just be weird. I think that giving gifts to everyone and their grandmother is just too much.
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frugal habits says
October 12, 2012 at 3:01 pmI agree Allison. I love getting a gift card. To me it is just as thoughtful because I can get what I really want, or need 🙂
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DC@Young Adult Money says
October 12, 2012 at 5:28 amYet again I have to say: gift cards kick ass! They aren't tacky at all.
Also, my family is big on exchanging gifts so for us it's more just making sure people know what everyone wants to avoid wasting the money spent on the gifts. I'm big into practical stuff so I will make a list of things I would likely buy anyway…and now that I think of it I will probably ask for a bunch of Home Depot gift cards since we are getting a house!
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Jordann says
October 12, 2012 at 10:59 amThat sounds like a great idea! I always try to ask for things I've been eyeing, that way I'm getting something I really will use. My whole family is like that, we tend to get things that the other person specifically asks for.
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Sam says
October 12, 2012 at 5:33 amYes! I'm right there with you! Another idea – handmade gifts! It might sound tacky to some people, but I've found all kinds of handmade gift ideas on sites like Pinterest & Etsy. Plus, if you take some time with it you can not only save money, but the recipient will be just as pleased, if not more with the effort you put in 🙂
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Jordann says
October 12, 2012 at 11:00 amI was considering taking up knitting this years specifically for that purpose. 🙂
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Pauline @ Reach Financial Independence says
October 12, 2012 at 5:35 amIt is overly commercialized, and a waste of money for many people who feel like they have to give gifts to everyone. In my family it is implied that adults don't get gifts, so we all buy a little something for the kids (under 10 or so), and as you grow you usually only get something from your parents. Then between adults we usually exchange something like homemade jams or bring a very good wine for everyone to enjoy.
Jordann says
October 12, 2012 at 10:58 amI like the way you do things! I have 14 nieces and nephews, but I'd always taken a hard line stance that I don't buy any gifts for any children because with Christmas and birthdays it would just get ridiculous (especially because I was a university student). To make things more even, these days the parents organize a gift swap between the children, which makes things easier, and since I don't have kids, I'm exempt.
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Monster Piggy Bank says
October 12, 2012 at 5:39 amMy family and I now only give presents to the kids.
We discovered that we were spending a small fortune each christmas and it was becoming more of a chore than it was fun.
Now we all enjoy christmas more and the kinds tend to get more presents as we have a bit more cash to spend.
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Jordann says
October 12, 2012 at 10:58 amThat sounds like a great balance!
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plantingourpennies says
October 12, 2012 at 5:51 amChristmas is pretty commercial – but there are weird ways that we rebel against it. One way is that we give each other "gifts" that are just normal things that we would buy anyway.
Another weird tradition that Mr. PoP's mom started with me is a gift box. It's basically a pretty box that we alternate between who has it each year – and the person with the box needs to put a tiny nothing gift inside for the other person to open on Christmas day. the gifts end up being silly but oddly thoughtful – like "I was out and saw this sticker that thought would make you laugh so I put it in the box!" kind of stuff. It doesn't cost much, but is a really nice tradition.
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Jordann says
October 12, 2012 at 11:06 amAww that sounds like a super cute tradition!
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John S @ Frugal Rules says
October 12, 2012 at 6:29 amGreat tips. I love gift cards. I know some don't like them, but it always me…or whoever I give the card to to buy whatever they want. That way you don't have to go through the whole feeling bad for returning something you don't like and hurting that person's feelings. I would agree that Christmas is overcommercialized…I mean Christmas decorations at the stores in September!?! That's just a bit crazy.
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Jordann says
October 12, 2012 at 11:08 amChristmas decorations in stores in September is definitely ridiculous, I'm glad I'm not the only one who feels that way about gift cards.
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Justin@thefrugalpath says
October 12, 2012 at 10:31 pmAt this rate it's going to be Christmas decorations in the stores 12 months a year. My wife and I were looking for Orange storage bins this week and noticed as the Halloween decorations were sold off the store replaced them with Christmas. It seems wrong to me that you have skeletons and ghouls next to Santa. at least let us enjoy the fun of Halloween before we have to think about Christmas excess.
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bluecollarworkman says
October 12, 2012 at 6:52 amMy family and I are trying yankee swap this year. Every year there's always arguments and drama about what to do for gift giving, should we still give gifts, etc. And this year we all finally decided tot ry something new. The game part of it should keep it fun.
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Jordann says
October 12, 2012 at 11:09 amSounds like some changes need to be made. I think every year there is at least a little bit of discussion about the gift giving situation, we just keep making tweaks to ours until we get things the way we want.
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MakingSenseofCents says
October 12, 2012 at 7:07 amWe spend a lot of money on Christmas presents for each other, but that is mainly because each one of us usually gets 1 or 2 big things such as a gun for the boy. We do a secret santa with his family though which is great!
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Jordann says
October 12, 2012 at 11:13 amThis year is one of our most expensive years for spending on each other. Our budget is a whole $100 each! Usually we just do stockings.
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Catherine says
October 12, 2012 at 7:08 amI also make gifts! As adults we no longer buy gifts for each other, rather the kids in the family. We play a yankee swap game every year too although it never includes anything crazy like an ipod, the top gift is usually a nice bottle of wine. As a family we also decided to stop buying gifts for the sake of buying them, my inlaws don't need anything at all so we're having a professional family photo done for them instead, they will enjoy it so much more.
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Jordann says
October 12, 2012 at 11:07 amYour yankee swap sounds a lot like ours, more for the fun of swapping than for the gifts, which is what Christmas is supposed to be all about anyway.
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whitney says
October 12, 2012 at 7:54 ami like your blog! thanks for checking out mine 🙂 always good to get an early start on christmas, so you can budget shop!
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Holly@ClubThrifty says
October 12, 2012 at 8:03 amI love Christmas and hate it at the same time! It's such a time of overindulgence when people are struggling all over the world. I just buy modest gifts and try to ignore most of it. It can be so over the top.
Jordann says
October 12, 2012 at 11:15 amAgreed, there are lots of people out there who make it just fine with far less, we just don't need all this stuff!
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Sean@OneSmartDollar says
October 12, 2012 at 8:30 amCall me old fashion, but I love Christmas and gift giving. I have no problem with the added expense every year, because it makes us happy. Now a holiday like Sweetest Day is over commercialized in the US by the greeting card companies.
Jenna says
October 12, 2012 at 9:45 amWe do a Yankee Swap every year for our 20+ family Christmas gathering. Our rules are that the gift must be worth around $10 – $15, and it must be locally made. It get's a little difficult trying to find different local products every year, but it's definitely worth it! Some of my family members make the gifts themselves and those always seem a little extra special to me.
Jordann says
October 12, 2012 at 10:19 amI don't have a problem with gift giving, I like to give gifts. I just don't like giving gifts that have had no thought put into them for every single one of my relatives. I find it a pointless exercise and I think that money could be better spent by all parties involved.
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Madison says
October 12, 2012 at 10:27 amI agree with you on a lot of points. I love gifts, but not if I'll never use them. In fact, I think I may just tell my family to not get my ANY gifts for christmas anymore. They always ask me what I'd like for my gift, and then usually get me something completely random instead. My family is struggling financially and not only do these random presents that I won't ever use cost money but so does shipping them to me. In my mind it's a big waste. I keep stressing gift cards but they think they're impersonal, sigh…
We used to do draw names when I was younger with our extended family but when times got really tough, each family decided to only get gifts for their immediate family and it's been that way ever since. It was just a 'hey aunt jane, I picked your name, what do you want?' kind of deal. Not very 'secret' as you can see lol. I think that swap game would've been great fun in our family had we thought of doing it!
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Vanessa says
October 12, 2012 at 11:08 amI looove Yankee swaps
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worksavelive says
October 12, 2012 at 3:49 pmChristmas unfortunately has simply become another avenue for people to do what we do best: spend money and show our love for one another through the giving and receiving of material possessions. I wrote about this last year on my site, but it's pretty sad to see people that don't feel loved because somebody didn't buy them a gift.
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@undefined says
October 12, 2012 at 6:38 pmI agree with you.Holidays in general are now more about making money and marketing than ever before. They have lost touch with what they are really about. We don't get gifts for our families anymore. Everyone has everything. We much prefer to just hang out with each other and appreciate each other's company.
I think WSL put it well above- we don't have to show our love and appreciation through possessions.
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Miss T says
October 12, 2012 at 6:41 pmI agree with you.Holidays in general are now more about making money and marketing than ever before. They have lost touch with what they are really about. We don't get gifts for our families anymore. Everyone has everything. We much prefer to just hang out with each other and appreciate each other's company. I think WSL put it best. We don't need to use material possessions to show our love and appreciation for others.
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Baylee says
October 12, 2012 at 7:25 pmThis just reminded me that xmas is coming! The thing I have trouble with is my dad got a new job a couple years ago and goes to town on gifts.. leaving me to feel like I have to. I've told him this, but he says he wants to do it. I always get way too much. This year I have a ton of homemade gifts that are actualy things I'd want to receive.. Lavendar body oil, apple pie booze.. I can't remember the others right now.. but they're good! Yes, Christmas is way over commercialized.
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Canadianbudgetbinder says
October 13, 2012 at 6:41 amOh as soon as Halloween is over and the lights are put up people go a bit nutty , at least from I've seen. We don't buy like we used to as it would take hours to open gifts. It was getting insane to be honest. Now we draw names once per year and we buy 2 gifts, that's all. It's the best decision the family has ever made as it was just getting out of hand. Cheers Mr.CBB
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Budget & the Beach says
October 13, 2012 at 8:53 amThis is why I love Thanksgiving over Christmas. Same basic concept-families and friends get together and eat and enjoy (or not) each other's company, but none of the months and months of bombardment you get from Christmas. And of course none of the commercialization. The only thing I like about Christmas is the pretty lights.
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NoTrustFund says
October 13, 2012 at 2:57 pmChristmas is definitely over commercialized. My husband and I have been going out to dinner as our Christmas present to each other. We started doing this one year when we were really working to save money and hadn't been eating out at all. Going out for a nice dinner felt like such a fun treat and it was cheaper than buying each other presents. It was so great to have on less person to shop for, and we had so much fun, we've kept up this tradition.
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adahat1 says
October 14, 2012 at 7:33 amWe do secret Santa with the cousins. There are just too many of them and we wanted to make sure nobody went out of control leaving the other cousins feeling left out.
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Stephanie says
October 14, 2012 at 6:27 pmWonderful post!!! I agree, exchanging gifts is wonderful, but there's no need to go overboard.
We always do a Secret Santa with my husband's family. All of the "kids" (the youngest of us is 23 now!) and their significant others participate, that way each person gets one nice gift instead of a bunch of cheap ones. We also buy gifts for our parents and nieces and nephews, but we only exchange gifts with a very small handful of friends. For the most part, we just end up going out for dinner and/or drinks with our friends, because we feel like it's more worthwhile to spend money on an experience with our friends rather than a bunch of "stuff."
Oh, and I've gone old-school on gift wrap as of last year. I bought a giant roll of brown kraft paper and tie up gifts with pretty red and green ribbons. Way cheaper than regular gift wrap, and it looks nicer too. 🙂
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CreditDonkey says
October 16, 2012 at 5:25 amThat is why many of us are budget tight after the Christmas holidays. We do tend to over spend during the season, regardless of whether we can afford. We can still celebrate Christmas without accumulating debt or spending all we can.
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