Will You Have a Frugal Holiday Season?

There are some hopes, by retailers at least, that this holiday season will see an increase in consumer spending over what was spent last year. But are consumers really ready to spend more money come this holiday season? Maybe not. Perhaps frugality has caught on a bit. Maybe it will become a new holiday tradition.

Frugal Gift Giving

One thing that has struck me in recent years is how gifts have become inflated. We feel we have to give big gifts, or expensive gifts. Or a lot of gifts. At least until the recession. Thanks to the recent recession, many people began wondering how they could save money on gifts, and began asking how they could reduce the amount of money being spent on gifts, and on holiday entertaining.

On a whole, I think this is a good thing. The gift inflation associated with the holidays in recent years put a premium on the cost of the gift, and encouraged spending money. On top of that, expensive gifts, and a profusion of gifts, are both things that contribute to a materialistic outlook. When we concern ourselves with how much we are spending on someone, it gives the impression that we are trying to buy affection, rather than express our own affection for someone else. Plus, it can result in large amounts of Christmas debt.

Frugal gift giving has the potential to get us back to a way of giving more thoughtful gifts. It wasn’t so long ago that homemade gifts were the norm, and small, thoughtful mementos were considered more than acceptable as gifts. The recession had many people thinking more about holiday gifts, since creativity has been needed in order to help stretch the gift giving budget. If the frugal gift giving trend continues, it may help us, as a society become less materialistic.

Limiting Gifts in My Family

One of the issues that my husband and I acknowledged last year was that we had been buying an awful lot of presents for each other and our son. It was starting to get ridiculous as the presents piled up around the tree — and the costs piled up in our bank account. We also worried about what we were teaching our son about money and things. So, last year, we put a cap on presents. We decided that we weren’t going to buy as many presents, or spend as much.

And it worked!

We had a lovely Christmas in which we focused on getting a smaller number of meaningful gifts, rather than a larger number of so-so gifts. It really improve our enjoyment of the holidays, and it saved us money. (Even though it took longer to do our holiday shopping because we were trying to find the “best” gifts.)

So, this year, we are ready to it again. We plan to limit our gifts to each other, and concentrate on getting thoughtful gifts for friends and family. We’re also going to do more pot luck entertaining so that we are all contributing to parties and dinners. This should also take the financial pressure for us and those we know.

What about you? Will you have a frugal holiday season? What are some of your frugal holiday tips?

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Comments

  1. says

    We had our first debt free, cash only Christmas last year. The parents loved it, the son was good, too. But the daughter, “this sucks. I didn’t get that many Christmas presents”. She’s 10, but she survived and got over it. I plan on doing it again this Christmas, too. ;)

  2. says

    I’m all about frugal holidays. I make presents and spend time with people, rather than buy gift cards and other expensive items.

  3. says

    I completely agree that Christmas got out of hand. Last year I was in a financial spot so I purchases no gifts. Just cards. This year there will be gifts but nothing lavish and maybe i’ll hand make all my cards too.

    Sadly I feel the majority of people will resume normal spending when they can.

  4. says

    Christmas for kids, is all about the gifts, that’s a given. As adults, it is our job to teach them what the meaning behind Christmas is and why we celebrate it. In my family we get what we can afford for people and try to get a little something for all of the kids. It’s not about the gift, it’s about the thought you put into it.

  5. says

    I think it’s great that you cut down on the number of gifts and focused more on the quality of the gift. I’ve noticed in my family that the kids who get a massive number of gifts don’t even really process each gift as they open it. They tear it open, toss it aside and move on to the next gift – the focus becomes the act of opening all the gifts instead of the gifts themselves. Sensory overload. If they have a smaller number of presents, they take more time with each one and actually look it and appreciate it.

  6. says

    It is true that gift-giving has gotten out of hand. But that does not mean people necessarily need to be frugal. The emphasis on gifts over experiences is unfortunate, not because of the amount of spending as much as because it is misplaced on “things” (often things that people don’t even want) rather than experiences (such as decorations, festivities and travel).

  7. says

    Three or four years ago, we started spending less on Christmas. I gave the kids more spending money and bought them fewer gifts. I told them Christmas was going to be more about giving and less about receiving. They loved it and they didn’t miss the loads of gifts they used to get. Christmas for us has become less about the stuff and more about the experience.

Trackbacks

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  4. [...] One of the best ways to save money over the long run is to plan to re-use holiday decorations. We bought a fake tree, and that saves us having to dish out for a new tree each year. Inexpensive scented candles help us get that Christmas tree smell. (Plus, we don’t have to worry about the fire hazard that comes with a real tree.) We also re-use the hand-made wreath my husband’s sister gave us one year. We have several other decorations that we get out year after year. Our gradually growing stockpile means that we don’t purchase any decorations any more, contributing to a frugal holiday season. [...]

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