How to Tell Your Loved Ones You’re Spending Less on the Holidays

Although the holidays can be magical, they also can be financially stressful. The pressure to give high-cost gifts and host perfect parties can lead to overwhelm and overspending.

Holiday budgeting can be challenging because it’s about more than numbers. Your spending is tied to emotions, family dynamics, and social expectations.

Because giving to and celebrating with your loved ones is important, telling them you’re spending less on the holidays can be difficult. Fortunately, you can take steps to make the process easier.

Why Spending Less on the Holidays Can Be Difficult

Although you might be fine cutting back on items for yourself, you might feel uncomfortable doing the same for others. Because the societal expectation to give presents can feel like a collective agreement, opting out or spending less can trigger feelings of guilt or shame.

You might worry about being judged for spending less during the holiday season. However, the reality is that most people are focused on other issues, not on how much you spent on gifts.

Typically, the pressure you might feel about spending less on the holidays comes from your beliefs about money, many of which are rooted in childhood experiences. Facing these emotions is necessary to control your finances.

Learn to sit with and process your feelings. For instance, if you feel pressured to give presents, reflect on the source of the pressure and how you can work through it.

Set reasonable limits on your holiday spending. Remind yourself that you are doing everything you can to make the holiday season memorable.

Tips to Discuss Your Reduced Holiday Spending

Prepare for potentially uncomfortable conversations about your plans for reduced holiday spending:

• Let your family and friends know about your intentions as soon as possible.

• Be direct, honest, and authentic when sharing your financial boundary.

• Recommend a spending cap on presents before your loved ones start their holiday shopping.

• Suggest picking names for gift-giving or planning a potluck meal to reduce holiday spending.

Focus on What Matters During the Holidays

Most people prioritize connection and community during the holiday season. Gifts and gatherings are simply ways to create holiday magic.

Focus on enhancing your connections with family and friends when planning your holiday spending. Shared experiences are more memorable and lasting than tangible presents:

• A homemade card or gift can express as much appreciation as a store-bought gift.

• A potluck can provide as much merriment as a restaurant meal.

• Outdoor skating can be as fun as a weekend ski trip.

• Hot chocolate can be as enjoyable as drinks at a bar.

*This information is for educational purposes only.