Gift giving this year is likely to take a hit as people try to save money where possible as bills rise and the cost of living crisis continues. While many of us still want to splash out and treat friends and family, this may not be an option.
Last year Brits were already feeling the pinch of the cost of living crisis with 45% of us anxious about the cost of presents. A YouGov survey found that this year three in ten are planning to spend less on the festive season.
Saving money doesn’t have to mean acting like the Grinch, you can still give great gifts on a budget. There are some innovative present ideas out there that could reduce some of the Christmas spending burden.
Alina Jaffer, personal finance expert at Virgin Money, suggests giving subscriptions as a gift for a year or even six months. Alina said: “Consider splitting the cost of a gift across the year by gifting a subscription service this Christmas. Whether you are offering to pay for someone's Spotify, Netflix or Amazon Prime subscription, this will be a well-loved present that the recipient is sure to enjoy.”
Spreading the cost of Christmas is a great way to make sure you can cover all your expenses and nobody misses out. Although Alina did add that you may want to prioritise who gets presents.
“It’s always a tricky decision, but with money a little tighter for many this year, it might be worth prioritising who receives gifts”, she said. Buying for everyone can be expensive so Alina gave these tips for reducing the number of gifts but not the joy.
Agree with family to just buy for the children
Alina said: “Making Christmas magical for the youngest members of the family is usually a priority for most. Rather than buying presents for the whole family, maybe just buy for the children. Agree on a plan with wider family and friends beforehand to ensure that everyone is on the same page.”Use Secret Santa for workplaces and friends
“This classic office gifting tradition is one that you might want to consider for wider family and friend groups. Buying one present rather than multiple is guaranteed to cut costs. For those taking part, everyone chooses a name of someone to buy a gift for at random and then they buy something suitable that fits within a pre-agreed budget. Only the person giving the gift knows who the recipient is and once all the presents have been given, people can guess who their gift is from.”Play White Elephant with family members
“In this variation on secret Santa, all participants purchase a gift worth the same amount and then choose in an agreed order who picks a random gift out of the group. When it comes to your turn, you can choose to steal from someone who has already picked their gift or choose something new from the pile.”
Beyond reducing the amount of presents you buy, reducing the money spent on the same presents can also help. Hannah Istead from Barry, Cardiff, shares her second hand steals on her TikTok account.
She said: “We have always shopped second-hand for a few things at Christmas but this year I’ve been planning early and picking up gifts at car boot sales and online to make hampers. Shopping second-hand should be encouraged; Christmas can be so expensive otherwise.”
“Over the last couple of weeks, I’ve bought a new Neom pillow spray for £1 (usually £20) a body scrub for £1 (usually £15), brand new Jaeger trousers with the tags for £2.50 (usually £110) and I regularly pick up new face masks for less than £1. We’re also looking at bigger items either second-hand or refurbished, such as a coffee machine or exercise equipment and garden furniture from Facebook marketplace.”
The second-hand market is huge and for more expensive items shopping around in car boot sales could save you hundreds. It is also a great way to help the environment and fight fast fashion and pollution.
If the person you’re buying for is a bit fussier, try giving them an experience rather than another physical present. Organise a trip out together in the New Year, this spreads the cost and creates lasting memories.
Joseph Seager, personal finance blogger at thriftychap.com, said: “Do your kids need another set of plastic toys or can you arrange a trip together somewhere? How about using the money to buy a pass to the zoo or a theme park? You could even team up with grandparents and pool money for an annual family pass.
“It's important to not put financial pressure on loved ones,” he added. “You could have an open and honest discussion with friends and family about not exchanging gifts this year. It might feel awkward bringing it up, but the other person could be thinking the exact same thing.
“Rather than exchanging gifts with friends of the family, how about just planning a beach day together? You'll make loads of memories and have more fun!”
Joseph also suggests paying attention to cashback offers to try to gain a bit back over the festive period. “If you do buy gifts, whenever you shop online, click through to the retailer via a cashback site to see if you can make some money back. Every penny in your pocket is important and, if you can earn some cashback, you're building a little pot of money. Even 1% adds up!” he said.
Alina added that current accounts also offer cashback benefits as well as using sites like Quidco, Top Cashback and the JamDoughnut app. These often pay out after a month so don’t expect an immediate return on your 50p.
The experts suggest being open and honest with people you are buying presents for if you are struggling. Set budgets and limitations together to make sure everyone is happy and can afford to give gifts this Christmas.
