The additional expenses around the holiday season can feel overwhelming. You may have a list of friends and family to buy gifts for, food to purchase and prepare, and the list goes on. In the midst of a global pandemic, there is already added stress this holiday season.
Although you may not be celebrating with extended family and friends in 2020, you probably still want to purchase them presents to spread some holiday cheer. You may have been laid-off, out of work for an extended time, or were not able to bring in as much income due to the COVID-19 pandemic. Here are some ways to cut back on costs this year, while still letting someone know you are thinking of them:
• Make a list. Determine in advance who you will be purchasing gifts for and how much you would like to spend on each individual on your list. Use the same tactic when preparing for any holiday parties and meals. Write down everything you’ll need, from food to napkins to decor. Treat your lists like budgets and stick to them. You’ll feel less tempted to go astray and make an impulsive purchase when you are in the store. Download an app on your phone to keep track of budgets and always have your list close by.
• Consider gift exchanges. Rather than purchasing a gift for each and every person on your list, propose the idea of a group exchange instead. This could be applied in many situations such as with co-workers, a group of friends, or extended family. There are many online tools that allow names to be drawn virtually such as Draw Names and Giftster. If you do not plan to get together in person this year, this could be a good alternative to save money and still celebrate.
• Create DIY gifts. A present doesn’t have to be store-bought to be impactful. Sometimes creating your own gift for a friend or family member has more meaning. Maybe you have a skill you enjoy doing or know of something specific someone on your list would appreciate. This could be as simple as a tray of their favorite cookies or desserts. A gift with a personal touch can be even more thoughtful, and can often cost less. Pinterest can be a helpful tool for DIY present ideas and guides.
• Give the gift of time. Maybe you have an elderly neighbor who could use some help cleaning up their yard or a friend who is a busy mom you could pick up groceries for. Carving out time to help make someone’s day easier might be more meaningful than anything you can buy.
• Buy décor after the holidays. It’s rare that you’ll find ornaments or outdoor lights and decorations cheaper than after the holidays have passed. Retailers want to unload their unsold inventory quickly and will offer steep discounts to do so. By buying in advance of next year’s holidays, you could save yourself a substantial sum of money. You may have to put new decorations on pause for the year, but your wallet will be happy you waited.
• Offer reward points as a gift. If you’ve racked up enough points on your credit card for an overnight stay at a hotel or a flight, consider gifting your rewards. You could plan a night away to a nearby city with your partner, or gift a plane ticket to a friend with family far away. It is important to check disclaimers beforehand as some may require the reward earned to be booked in the cardholder's name.
• Utilize technology. Even if you want to purchase a tangible gift for everyone on your list, there are websites and apps you can use to cut back on costs. Look for coupons and discount codes to use at certain stores or see if a store has any rewards programs. Many stores offer a discount when you open a store credit card. For example, Target offers 5% off every purchase to their RedCard™ holders. There are also apps you can download to compare prices and get a better deal.
Although the holiday season may look different in 2020, exchanging gifts with loved ones doesn’t have to change. Maybe this is the year you change traditions and try the gift exchange with a group or all agree to create homemade items. If you want to get ahead of saving for next Christmas, consider opening a Club Savings Account with BankFive to help you reach specific goals with your finances.
Although you may not be celebrating with extended family and friends in 2020, you probably still want to purchase them presents to spread some holiday cheer. You may have been laid-off, out of work for an extended time, or were not able to bring in as much income due to the COVID-19 pandemic. Here are some ways to cut back on costs this year, while still letting someone know you are thinking of them:
• Make a list. Determine in advance who you will be purchasing gifts for and how much you would like to spend on each individual on your list. Use the same tactic when preparing for any holiday parties and meals. Write down everything you’ll need, from food to napkins to decor. Treat your lists like budgets and stick to them. You’ll feel less tempted to go astray and make an impulsive purchase when you are in the store. Download an app on your phone to keep track of budgets and always have your list close by.
• Consider gift exchanges. Rather than purchasing a gift for each and every person on your list, propose the idea of a group exchange instead. This could be applied in many situations such as with co-workers, a group of friends, or extended family. There are many online tools that allow names to be drawn virtually such as Draw Names and Giftster. If you do not plan to get together in person this year, this could be a good alternative to save money and still celebrate.
• Create DIY gifts. A present doesn’t have to be store-bought to be impactful. Sometimes creating your own gift for a friend or family member has more meaning. Maybe you have a skill you enjoy doing or know of something specific someone on your list would appreciate. This could be as simple as a tray of their favorite cookies or desserts. A gift with a personal touch can be even more thoughtful, and can often cost less. Pinterest can be a helpful tool for DIY present ideas and guides.
• Give the gift of time. Maybe you have an elderly neighbor who could use some help cleaning up their yard or a friend who is a busy mom you could pick up groceries for. Carving out time to help make someone’s day easier might be more meaningful than anything you can buy.
• Buy décor after the holidays. It’s rare that you’ll find ornaments or outdoor lights and decorations cheaper than after the holidays have passed. Retailers want to unload their unsold inventory quickly and will offer steep discounts to do so. By buying in advance of next year’s holidays, you could save yourself a substantial sum of money. You may have to put new decorations on pause for the year, but your wallet will be happy you waited.
• Offer reward points as a gift. If you’ve racked up enough points on your credit card for an overnight stay at a hotel or a flight, consider gifting your rewards. You could plan a night away to a nearby city with your partner, or gift a plane ticket to a friend with family far away. It is important to check disclaimers beforehand as some may require the reward earned to be booked in the cardholder's name.
• Utilize technology. Even if you want to purchase a tangible gift for everyone on your list, there are websites and apps you can use to cut back on costs. Look for coupons and discount codes to use at certain stores or see if a store has any rewards programs. Many stores offer a discount when you open a store credit card. For example, Target offers 5% off every purchase to their RedCard™ holders. There are also apps you can download to compare prices and get a better deal.
Although the holiday season may look different in 2020, exchanging gifts with loved ones doesn’t have to change. Maybe this is the year you change traditions and try the gift exchange with a group or all agree to create homemade items. If you want to get ahead of saving for next Christmas, consider opening a Club Savings Account with BankFive to help you reach specific goals with your finances.