Thursday, December 2, 2021

Thrifty Thursday: Gift Giving Strategy When Trying to Trim a Budget

      I feel like I already do pretty well in the gift giving department, finding nice gifts at decent prices, and try to avoid crap just to give a gift. In my quest though to reach a one earner lifestyle by January 1, 2024, every area of discretionary spending needs to be  reviewed, and gift giving is one of them. I have four categories of gifts-Christmas, birthdays for family members, "days Holidays", and miscellaneous for things like weddings, showers, and new babies, as well as  milestone b-days of friends. The miscellaneous bucket seems to be the hardest to plan for since these are gift giving events we have no control over, nor sometimes lead time to plan. Here's a few strategies to trim our spending.

Make a Gift Recipient List and Budget

     I need to create  list and a budget heading into the year, and stick to it. Whenever possible, I'll shop ahead of time, and if we truly do not have a good gift idea, just supplement with cash. I'm happy to stick in a favorite box of movie theater candy or a jar of homemade jam, or a fresh baked loaf of bread if just giving cash feels too impersonal. Gift cards towards specific activities might be a good gift instead of cash if I know it will be used. Cash and gift cards don't save me anything from my budget, but they keep me on budget and I'm not buying stuff that might just be wasted. The next ideas cross all categories.

Combine gift cards to restaurants with "freebies" in our entertainment budget.      

               For example, I just bought $50 in Applebee's and got $20. We can buy several gift cards for others, but use the $20 freebie, usually with a very short window, towards our own entertainment budget, shifting the funds to the gift category.  The limitation to this is it probably will all be gift cards to chain and not local restaurants. Still, it can be a good gift that could be bought in advance if you know you have several milestone birthdays, or new parents that might love nothing better than either a night out, or a call and pick-up meal. 


Shop with Discount/Freebie Gift Cards

     I plan to put all my Target earnings from MS Rewards toward Christmas again this year. I also have a few from the "free" gift card promotions Target periodically does, so those will get applied as well. I'm leery of sites like Gift Card Granny, but I've heard or read there are places that sell or have sales on gift cards form time to time. Does Dollar General ring a bell? If you know or have good luck with any sites, let me know. 

No frills practical gifts: 

     Interesting fact I learned at Trivial last night, 56% of people surveyed like getting socks for Christmas. I hit a great clearance sale at a high end outdoor clothing store last January. Guess what a lot of gifts will be this  Christmas and for winter birthdays? Extra thick socks, wooly mittens, and hats are a necessity in my part of the states. Likewise, stocking up on  summer items for those gift giving needs help defray paying full or even the on-sale price in the current season. Then there are seasonless gifts for some people on my list that I've targeted for collection. Think tank tops, leggings, and athletic shorts for the girls in my life who wear year round in layering or for working out, swimsuit cover ups (Summer and travel), and men's high end quality t-shirts. I hit a rock bottom sale on thick white cotton Ralph  Lauren tee's over a decade ago. The one's DH has look better than basic Hanes he just got  a year or two ago. I need to think beyond clothing though, and sporting and camping stores or departments in stores can yield some great buy ahead gifts, like Fire Starters I got for 1/3 price. Now that I have a virtually clear closet in the office, I can  better organize my purchase ahead gifts. 

Miscellaneous Gifts: Baby, Wedding Shower. and Wedding and Milestone Birthdays

     I'll start the year thinking through the potential life events with my family and close friends.  Once I do that, I'll pad my budget with  2 small (b-day) 2 mid (new baby/showers) and 1 large (wedding), then add all, decide my budget, and divide by 12 to build the cash reserve. These events can be tough as it seems  more and more new mom's and couples have specific wants, or already have a lot of stuff, but have big ticket items only left on a registry. I try and combine any deals I can with the items on the list like rebates, applying coupons, or earning points/gift cards back. To tighten my belt, I might have to change what I do with those savings as historically, I've used the savings to  put back more into the gift.  Sometimes, or most often, times, cash in the range I budgeted for, or a gift card to a preferred store, in the amount budgeted for is where I'll end up. So while not really a savings strategy, it keeps me on budget. 

      This sounds terrible, but one gift recipient that seems to blow our budget regularly is DH's mom. Either DH or his sibling will identify a need type for her-at her house, or at the lake, and determine if we just give it as a gift, then we'll know it has been taken care of. It's not a bad plan, but everyone also still ends up giving individual gifts as well. And, the big gift, even split three ways, is not cheap. For example, we replaced all the door handles in her large townhouse with the type that are push down and pull, so she no longer has to turn the door knob. Excellent for her independence, but split three ways, we still spent $250 each for her birthday. Now, my MIL is not a  penny watching pensioner living on  SSI. She is quite comfortable, bordering on wealthy. She also though is very careful about money, and would not have gone out and replaced perfectly good door knobs on her own, even though she complains that on her bad days she can hardly turn the door to get into her bathroom. 

     What's my plan? Well, She tends to give DH and I cash for both our birthdays and at Christmas. We too do not need anything, and if want something, we tend to plan, budget, then save. My way to offset these extra expensive gifts is to put her gift money to us, towards these gift purchases for her. It wouldn't be a quid pro quo, but more of a "the cash is there" kind of process. To be honest, I think that is kind of what DH's sister does, based on a comment or two. Quite frankly, peace of mind that something has been done to make her life easier and safer is a gift to all of us! 

     I know my gift buying list probably seems excessive to many readers. It does to me as well. Until I trim the number of reasons for gifting and to whom, I'll use strategies to not blow my budget. Of course, a really great gift is time, so if you want to truly show people you care, carve out time to spend with them this season. 



21 comments:

  1. You have many people and many occasions to give gifts but, it looks like you have a plan and you are doing well on gift giving. My family is very small but, we have given up giving gifts some time ago. It is so hard to find gifts for each other.Instead we try to be together and celebrate the special day at a nice restaurant or with a nice dinner at home. We still give each other small practical items though, only casually, for no special purpose.

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    1. I would love to scale back for extended family and even tailor back the gathering on the days itself, but I'll get over ruled! I do enjoy giving gifts though.

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  2. We don't exchange many gifts with my family (just the kids), & there is no option to exchange with my husband's family. So, our list is pretty small. We have the occasional wedding or baby shower gift, but those are pretty rare.

    For my family, we do bigger splurges infrequently (typically trips). They are budgeted for, & preferred over things. So, I suppose we are infrequent gift buyers, but when we do spend, it's quite a bit & irregular/hard to plan. As our kids get older, their asks are much smaller in volume, but somehow also much more expensive. ;-)

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    1. I'd rather give more experiences than stuff anyway, and my kids tend to get money towards or an item to go with an adventure.

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  3. We are living on my IRA and our Social Security. Hubby's IRA is going to the mortgage so we can get that off our shoulders.

    We give cash for birthday. Great grandkids get a dollar for each yr until they are 10, then they get what the grandkids and kids get that is $10,except "special" years like 13,16,18,21, 25,30,40,50 (50 will be next year). I just did the birthday envelopes (based on month) so that is done. For Christmas, kids and adult grandkids get $50 each. Grandkids still in school get $25. Great grandkids get $10. Four legged grandkids get $5. Son2 gets a gift as he is single. Son1 gets a gift from his biologic mom so we give him cash (he uses it for the vacation he takes in Jan., he would rather she gave him cash and has even mentioned it but she won't)
    Graduations are $100. Weddings are what ever we can afford at the time. I actually move the money (each month) to a savings account until the month before it is needed.

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    1. You've really got a great plan! Your allocations though I do not have grands or great grands, is similar to how I might think of giving in the future. I probably indulge my adult kids a bit, but since just the three, I can.

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  4. I have always given gifts like socks or underwear and on sale. Plus, I have given expensive beach towels bought on clearance in December. Summer will come. I can give leather gloves with cashmere linings if I buy them in the summer and keep them until Christmas. I am not going to buy from a gift registry if it is outside my means/budget. I think the gift cards for meals is brilliant as a gift for new mother. I would even appreciate those.

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    1. A nice beach towel is a good gift. Three years ago my kids each got them. It's about an every 5 year gift I think.

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  5. I have always had a fairly large gift list and tend to give multiple gifts to everyone on my gift list, so no judgements from me about your list.
    This year I am changing things a bit and giving just a couple of consumable or needed gifts to go long with cash gifts. Except for Pip no one in my giving circle needs more "stuff", and with cash they can get exactly what they want.

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    1. My kids are either getting practical, as I mentioned, cash, or if they give me that one or two things they want or need, I will. (I have DD1 done that way and she will like). I think when they couple up, I'll likely do more cash, and I like the consumable idea-something loved and a treat.

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  6. I give quite a few gifts to many as I have a large family, 21 immediate, but I enjoy and it’s a fun mix of things, post sales, foods ….. one year my daughter did a simple fairly inexpensive gift for her nieces/nephews (my grands, there are 12). Each family has six kids and one had mentioned they just wanted a box of their own cereal. So she bought white IKEA bowls for each, bought the pens for dishes(you bake it on) and put their names cutely on the outside. She found out each kids favorite cereal and they loved it. quite the hit and frugal.

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    1. Clever idea! I am definitely above average in family size, so it makes sense my shopping might be more, but I'm trying to be careful, while still giving joy.

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  7. I like your gift giving strategy!
    Our family is smaller now since the older generation has passed on, so we give something to my brother and his family, and my cousin and his family. Last year, dh's family decided with covid, it would be safer for them not to have to shop, so we only gave gifts to his mom and his sis and family. I think most people will get gift cards or cash this year. Dh has a laser cnc cutter, so I think he is going to make personalized coasters or something like that.

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    1. I'd love a set of unique coasters. It is one thing I do not have.

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  8. I've given no thought to Xmas presents whatsoever. There's only a few friends (and my brother) who we buy for and they all like the same things as we do - secondhand, vintage, fairly-traded or artisan foodie. xxx

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    1. When both of us come from big families the gift giving events throughout the year are sizeable. I like adding artisan and homemade food. Last year, everyone got home made pumpkin bread.

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  9. Hi Sam, No wonder you need to watch your budget with all those gifts to buy! Somehow, I don't seem to need as many gifts to give, but I like to make them unique and fitted to the person. Also, living so far away, and especially lately with covid and so forth, I have quit giving gifts on specific occasions, and just give them when I find something good. On the other hand, Chinese New Year is coming up, and that is a big budget item. Cash is traditional, but I also like to give small physical gifts as well. Oh, and my friends can have as many babies as they want--I won't grudge them a few stuffed animals!
    --Jim

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    1. I have a hard time resisting things for new babies joining the family. I just got my great nephew the cutest/ tiniest baseball glove and ball.

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  10. As you know, I work in baby/children’s retail so I often pick up super cheap gender neutral things to have on hand for gifts and I get things for nieces cheap as well. Interestingly enough, I bought both of my kids Timberland socks (from Marshall’s) for Christmas and I always love blanket as gifts. My son needs a good snow brush for his car. My dad commented that he could use some new pot holders. I also bought my dad an ambulance subscription. (Not sure if this is something done everywhere but if you donate they discount any usage you may have. We learned when my mom was sick that insurance doesn’t cover all costs. Not a fun gift, but kept the money in his pocket and gives us peace of mind). Soaps, lotions, shower gels are things I love to receive as gifts. Alcohol is nice to give and get as well ;) It’s a very practical Christmas this year but I still will sneak in a miniature lego set or art project for my kids. They always get a toy! JoAnn

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    1. I remember shopping at The Children's Place when my kids were young, more so the last one, and hitting their clearance racks hard!

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  11. Just a heads up. Target will have their store gift cards at 10% off this Sunday (12/5) - both in store & online. I buy the max limit every year.

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