Holiday Gifting: Reduce Holiday Money Stress
The holidays can be a wonderful time of year, but let’s face it: they often come with stress—and money is usually a big part of that. One way we’ve reduced financial stress during the holidays is by having two key categories in our budget: “Gifting Others” and “Gifting Each Other.”
Even though we share a household budget, we still want the freedom to give gifts to friends, family, and each other without feeling constrained or unprepared. Here’s how we make it work:
Setting Aside Money Year-Round
Every month, we allocate a set amount of money to these two categories.
The “Gifting Others” category covers birthdays, holidays, and moments of generosity for friends and family.
Each of us also has a personal “Gifting Each Other” fund, which we can use whenever we want to treat or surprise one another.
Why These Categories Matter
Having dedicated gift funds has been a game-changer for us. Here’s why:
Avoiding Impulse Spending: I know myself well—if I see extra money in our general account, I’m tempted to spend it. Without clear boundaries, I might blow through money that should be reserved for something more meaningful.
Stress-Free Giving: By planning ahead, I’m able to give gifts without the pressure of figuring out how to pay for them. This system ensures that I won’t go into debt or have to sacrifice other financial goals to show my love and appreciation.
Making the Holidays Enjoyable: December tends to be a heavy gifting month for us, but thanks to these categories, we enter the season with enough funds to enjoy the process rather than stress over it.
How You Can Start
If you don’t already have a gift category in your budget, now is the perfect time to start. Use this holiday season as a chance to gather data and create a plan that works for you:
Reflect on Past Spending: Review your bank or credit card statements from the past year. Who did you gift, and what did you buy? Make a list to get a clear picture of your gifting habits.
Set Your Gifting Goals: Decide how you want gifting to look in your budget moving forward. Consider how much you’d like to spend annually and divide that amount by 12 to determine your monthly contribution. If you find in step 1 that you spent $2400 in the past year on gifts for others, you will set aside $200 a month for gifts.
Create Dedicated Categories: Add “Gifting Others” and, if applicable, “Gifting Each Other” to your budget. Start contributing to them regularly to build up a fund that will make future gifting stress-free and enjoyable.
Final Thoughts
Budgeting for gifts isn’t just about avoiding debt or financial stress—it’s about aligning your spending with your values. Having these categories allows us to give meaningfully while staying in control of our finances. It turns what could be a source of anxiety into something joyful and intentional.
Wrap up this holiday season and then start your gift categories, and by this time next year, you’ll have a gifting system in place that makes the holidays—and all the special moments in between—a little more magical.