It may be the season of giving, but that doesn’t have to automatically mean spending. In fact, with a little creativity and careful intentionality, you might find some meaningful ways to save this season. Now, I promise I’m not getting Grinchy here – I love giving gifts and showing my loved ones how important they are to me. But with so many of us feeling the pinch in this economy, this might be the time to reevaluate your patterns. Here are some of my favorite approaches to achieving both the joy of giving, and the satisfaction of saving:
Re-evaluate your gift list. Does everyone really want or need a gift? Would something other than a purchased item better align with their love language?
Tip: It’s easy to decide not to give a gift to someone, but how do you talk with them about it, especially if it’s a family tradition? Be honest and come to the table with some alternative ideas that honor your values and your budget.
Give the gift of giving. This one of my favorite “double wins:” Instead of a physical gift, honor a loved one through a donation to one of their favorite charities. Take the time to research a charity that aligns with the values and causes your loved one cares about (as well as your own values, because it’s your money, too!).
Tip: If you already have some money set aside for year-end charitable contributions, making this donation part of your year-end giving saves you money on gift giving.
Maximize your giving with a corporate match. Make that gift to charity go even further by using any match that might be available through your employer. It might take a few minutes of your time to get the match set up, but it can really amplify the impact of your gift.
Tip: If the tight economy means you can’t be as generous as you would like, this is a great way to ensure those organizations you care about are financially supported without having to take more money from your budget.
Save on shipping by buying local gifts for your distant loved ones. Sometimes I think we need a separate line item in our gift giving budget just for postage. It’s amazing how much shipping costs can add up! One great way to save money, especially if you value shopping small, is to order gifts for loved ones from small shops in the places where the loved ones live. If the store has “pick up” available and another loved one can go get the gift, all the better!
Tip: Want to up the ante on your local gifts? Create a scavenger hunt by giving them gift cards to a few small businesses in their area, or order something small at a few different destinations that they need to pick up. This can make for a fun adventure.
Trade up the fancy holiday party for a group volunteer shift. While the food and drinks are enjoyable, it’s often the company we crave most. How about asking your friends and family to volunteer with you instead? This would give you an opportunity to reconnect while you help neighbors in need. VolunteerMatch can help you find opportunities in your area.
Tip: Gathering together a group that isn’t local? You can volunteer together virtually. Check out these ideas from Points of Light.
Go “halvsies” with a savings goal. Instead of spending the entire budget on gifts for today, why not spend half of what you would normally on a gift that can be used today and put half toward a savings goal for tomorrow. As my husband and I have done this the past few years, we were able to pad our travel fund and save up towards our move, all while helping us become more creative and strategic about our gift giving since we had such a small budget.
Tip: Not sure what savings goal to focus on? An emergency fund is even more important right now as inflation grows and lay-offs loom. If you don’t already have an emergency fund, this blog post explains the ‘why’ and ‘how.’
Pay attention to credit card rewards and special offers. If you regularly (and wisely) use credit, see if your card designates specific purchases that will give you more points/cash back, especially on things you already intend to buy.
Tip: Remember, rewards and special offers shouldn’t be a reason to open a new credit card, or to spend on impulse. It’s important to pay off credit cards each month to avoid paying any interest or incurring any fees.
Move those long-term savings to a high-yield savings account. Putting larger savings funds (like your long-term emergency fund or money you’re setting aside for a home down payment) into a high-yield account can put interest accrual on the fast track. For instance, my regular savings account at my bank earns .1% interest, whereas my high-yield account is currently earning 3%. That means on $1,000 my bank account will earn about $1 in interest, compared with the almost $30 it would earn in my high-yield account. That’s one more Christmas gift or one more takeout dinner I can now afford in 2023.
Tip: Not sure what a high-yield savings account is or where you might go to open one? Check out this Nerdwallet article.