How to Stop Overspending This Christmas

Embrace Simple Living and Frugal Shopping to Save More Money

Nov 26, 2008

This is the year to embrace simple living and frugal shopping to change a family tradition of overspending on Christmas presents.

Every family has at least one person who spends too much on Christmas gifts and expects everyone else in the family to do the same. This is the year to approach that person and make a big change in how the family exchanges Christmas gifts.

Simple Living and Frugal Shopping

If ever there was a time to convince overspending relatives that the holiday needs to be scaled back, this is it. Job loses are on the rise and many people are wondering if they will be facing their own financial crisis in the coming year. In other years, family members interested in scaling back might be called Scrooge or ridiculed for wanting to change a family tradition of generous gift giving. This year, there is no explanation needed for why it is important to reduce spending and save money. Use the global financial crisis and the following ideas to persuade family members it is time for a change.

One of the best ways to reduce overspending on Christmas presents is to set a price limit for gifts. Setting a limit of $10 for children or $20 for adults can drastically reduce spending without reducing the number of gift choices. No matter what, some people will probably go over the price limit. There is no need for budget-minded participants who stick to the price limit to feel guilty when others don’t do so.

Presents for Parents or Grandparents

If a family’s holiday tradition is to buy for everyone in the family, there is a simple solution: Only buy for the oldest family members. Going in together on one significant gift for a grandmother or grandfather is a great idea. Family members can choose a substantial and useful gift instead of purchasing small individual items. This is a particularly useful idea for relatives who are hard to buy for or who tend to go out and purchase what they need on their own.

Choose Christmas Gifts for Children

Instead of buying for everyone, consider only buying for the youngest generation. This is an option for families with a lot of young children. Watching children enjoy the holiday can be even more pleasant than opening gifts. Reducing the number of gifts under the tree for the adults can put the emphasis back on the simple, childhood joys of the holiday.

Another popular option for large families is to draw names. Family members are matched up ahead of time and then each person buys one gift. Everyone gets a gift with this method and it is a lot of fun to see the gift choices. Combining drawing names with a price limit can reduce overspending even more.

Encourage Simple Living with Family Gifts

Family gifts meant for the entire family to enjoy together is another way to reduce the number of gifts and the amount spent on Christmas. Instead of purchasing individual gifts for everyone in a household, one gift for the whole family is purchased. Ideas can include a movie night basket, board games and snacks or even a membership to a museum or park.

Changing a family’s holiday culture can be difficult to do, but the current financial environment can be a great argument in favor of simple living and frugal shopping. Reducing overspending now can create a new holiday culture for years to come: A holiday culture that focuses more on the gathering of family than the giving of gifts.