Is giftflation blowing up your holiday budget? Here’s how to fight it
By Lauren Schwahn NerdWallet Think about all of the people on your holiday gift list Now think about how much all those gifts are going to cost you Are you starting to sweat a little bit If gift shopping feels like a bigger financial burden this year you re not alone A latest NerdWallet survey finds that holiday shoppers plan to spend more than last year on presents on average Chalk it up to giftflation What is giftflation Giftflation refers to the rising cost of gift giving fueled by inflation and the growing pressure to give Why gift givers are feeling extra strain Shoppers are getting a strong dose of sticker shock this year Sweeping tariffs have hit popular gift categories such as apparel household goods and appliances It s no surprise that a multitude of holiday shoppers expect tariffs to impact their holiday shopping according to the NerdWallet survey It s not just gifts that are getting more expensive Inflation is also driving up the price of food vigor transportation and other essentials according to content from the Bureau of Labor Statistics When everyday costs rise that leaves less room for discretionary spending when it comes to gift giving says Hillary Stalker a certified financial planner in Franklin Tennessee Related Articles How to spend a million dollars on a K home -year mortgage math Fed minutes Largest part functionaries supported more rate cuts but not necessarily in December A fourth tier of credit cards has begun to emerge Sharp disagreements over financial market threaten Federal Reserve interest rate cut Will the price be right What shoppers can expect for the holiday season Surging costs come at a time when numerous households are coping with income disruptions from layoffs and the governing body shutdown Shoppers may lean more heavily on payment methods like credit cards and buy now pay later plans which could lead to overspending Taylor Nelsen an accredited financial counselor in Greenville North Carolina says the high earners she works with are feeling the squeeze too They re making money but they are just pressed in a lot of other areas right now she says Multiple high earners have bought their first homes in the last limited years she says and are concerned with managing other expenses alongside steep housing costs Social pressures are mounting too A lot of high earners are entering a stage of life where they feel expected to give gifts to more people like their kids teachers Nelsen says And when it comes to showing gratitude to the people in our lives we often set the bar too high We may feel guilty if we receive an expensive gift and don t reciprocate says Lynn McHann an accredited financial counselor in Bozeman Montana It s hard to shake the feeling that we re falling short Stalker says the rise of social media and influencer tradition has intensified the pressure to buy more expensive and extravagant gifts What used to be keeping up with the Joneses now feels more like keeping up with the Kardashians she says How to fight giftflation You can keep the holiday magic alive without going overboard on gifts These strategies might help Take a good hard look at your cash flow If you don t already have a holiday budget make one now Check on how much money you have coming in and going out Then choose a spending limit that works for you If you re feeling strapped this year start thinking about a savings plan for next year Put a little bit of money away for holiday spending each month throughout the year so that it s not such a crush to your budget during a one or two-month period McHann says Reset expectations Take a step back and evaluate the relationships you have with the people you feel obligated to give gifts Nelsen says Do they even want a gift she says Talk to your adult family members about what they value You could do something more meaningful than a wrapped present like swapping childcare Nelsen suggests Don t hesitate to set boundaries Let loved ones know if you need to scale back or sit out the gift exchange Be honest about the financial or emotional challenges you may be facing right now Friends and family may assume you re doing just fine financially They might not know about the busted water heater you just replaced or that your homeowners insurance premium is about to go up These discussions can be tough but they re necessary to protect yourself Stalker recommends having these conversations with your kids too to help set the tone Stick with a simple explanation like This year things are going to be a little tighter than they ve been in the past or Please give me your list Just know that Santa can t bring all of these things she says Pause before you buy Taking advantage of Black Friday and other holiday deals can help offset inflation But don t let flashy advertisements and the fear of missing out on online sales lure you into buying more than you planned McHann suggests waiting hours before going through with an unplanned purchase If after hours you re still feeling the elation about giving that gift and it doesn t cause you anxiety then go forward with that purchase she says If it s too hard for you to scroll through social media without feeling the urge to shop give yourself permission to log off It s also perfectly OK to take a step back from being on social media through the holidays Stalker says Taking a break will help you avoid impulsively buying things through influencer links or envying what other people have Get creative Look for affordable means to give such as thrifting your holiday gifts planning a coffee date or making something by hand Stalker says her favorite gifts this year are the painted coffee mugs her kids made for Mother s Day And surely they did not cost anywhere near the price tag of a designer handbag she says More From NerdWallet We re NerdWallet Deal Experts and Here s Our Black Friday Take How to Plan a Bougie Thanksgiving Dinner on a Budget What to Buy and Skip on Black Friday Lauren Schwahn writes for NerdWallet Email lschwahn nerdwallet com Twitter lauren schwahn The article Is Giftflation Blowing Up Your Holiday Budget Here s How to Fight It originally appeared on NerdWallet
