How to plan your holiday gift budget

The holidays are a time for joy, family, and...financial stress? That can happen if you don’t go into the season with a plan. But this year, let's ditch the debt and embrace a budget that keeps your spirits bright.

In a recent survey, 74% of our Savers* said they are concerned about inflation when it comes to holiday shopping, but they still plan on spending $845 this holiday season. And they’re stretching their budgets by shopping at discount stores, cutting back on non-essential items, and switching to store brands.

1. Make a list, and check it twice

Before you even think about filling that online cart, write down everyone you feel obligated to buy for. Family, friends, coworkers, teachers, your dog walker — everyone. Now, here's the important part:

Use a critical eye on your list. Are there people you can remove? Maybe suggest a Secret Santa or drawing names with friends, or a family donation to a charity instead of gifts. Or give one gift to a whole family instead of individual ones to each person. Remember, it's okay to re-evaluate your gift-giving traditions.

3. Set realistic spending limits

Once you have your finalized list of gift recipients, set a spending limit for each person. This is where honesty is key. Be realistic about what you can afford. 

Consider your monthly income, your existing expenses, and your savings goals. There’s no need to derail your savings plan or spend  your whole paycheck on gifts. Your own personal budget is most important, but here are some general guidelines and gift ideas: 

• Kids (0-12): $25-$75

• Younger kids: Books, small toys, art supplies

• Older kids: Games, larger toys, sporting goods, experiences (zoo tickets, etc.)

• Teenagers (13-19): $50-$150

  • Electronics, clothes, gift cards to their favorite stores, experiences (concerts, events)

• Adults (20+): $50-$200+

  • This gets very broad! Consider hobbies, needs, and experiences.

• Extended Family/Acquaintances: $15-$50

  • Smaller gifts, gift cards, or homemade treats.

• Coworkers/Neighbors: $10-$25

  • Small tokens of appreciation, like a coffee shop gift card or a festive treat.

Of course, you don’t have to spend this much! A less expensive thoughtful gift that the person will love means far more than a pricey one they’ll never use. Or do handmade gifts or offer acts of service for a more meaningful (and cheaper) alternative. 

4. Track your spending

Keep a running tally of your holiday expenses. This will help you stay on budget and avoid any surprises when your credit card bill arrives. Use a budgeting app, spreadsheet or good old-fashioned pen and paper.

And once you hit your price point for someone, don’t buy any more! If you find something you’d rather give them, make sure you return the old gift first. No use piling up spending on returns you forgot to send back. 

5. Shop strategically

If you’re an Ibotta app user you already know to look for cash back on holiday gifts. So keep checking first to see if your favorite online shopping retailer has a cash back deal before you fill your cart. You don’t want to miss a single offer! 

Using Ibotta can help you stretch your holiday shopping budget farther. Many of our Savers stockpile their earnings all year via gift cards to spend for gifts. 

Shop around for Black Friday sales, check local stores for unique finds, or even think about thrifting some options. You can also try to buy multiple gifts at the same retailer to get closer to free shipping or other deals. But don’t be seduced by filling your cart with things you don’t need. Sometimes the $7 in shipping is better than a $35 sweater they don’t actually want. 

8. Don't be afraid to set limits

It's okay to decline invitations to expensive events or opt out of gift exchanges that stretch your budget. Your friends and family will understand. Be mindful of everyone’s budgets when you do participate and set spending limits that everyone can stick to. 

This holiday season, remember that the true spirit of giving lies in thoughtfulness and connection, not the amount of money you spend. By planning ahead and prioritizing your financial well-being, you can enjoy a stress-free and truly joyful holiday season.

*Internal Ibotta 2024 Holiday Shopping Research Report polling nearly 2,000 Savers.