By: Sarah Steward, MS*
The holiday season is a time to celebrate, enjoy friends and family, and exchange gifts with loved ones. To be honest, all that fun isn’t free. When it’s all said and done, you might be looking back and wondering what happened to your paycheck. Between those fancy decorations, travel, food, and gifts (and pricey wrapping paper—cha-ching), costs can really add up. It’s not always easy to cut back because holiday traditions and gift exchanges can often have emotional meaning for you and those you’re close to.
Giving or exchanging presents is an ancient behavior that exists in most societies across the world. And it’s a practice that can last throughout your lifetime. Though you might give a gift for many different reasons—including a sense of duty, love, or even pity—at its core, gift-giving is about building and fostering connections. For example, buying something unique for that special someone is often a signal of your commitment to the relationship. Or spending time and energy to find just the right gift for a friend or family member shows you understand their likes, dislikes, and what they deeply value. And people often tend to (incorrectly) think that spending more money shows you care more about the receiver.
With all that, it makes sense that the average American family spends up to $1000 on holiday gifts—and that number is growing each year. But such a large expense in a relatively small amount of time throws many families into debt, and it often can take several months to pay it off. Learn about some common gift-giving myths and rethink the way you approach holiday spending this year.
Myth #1: The more expensive the gift, the more it shows I care.
Fact: The cost of the gift isn’t really what makes the most impact. Gifts that show a little piece of who you are typically lead to more closeness. For example, give your music-loving friend tickets to see your favorite band. By doing so, you show you understand and appreciate their interests and want to share a piece of yourself too.
Myth #2: The more unique and special it is, the better.
Fact: Hundreds of dollars a year are wasted on items that are underappreciated or never used. While your intention might be to get that high dollar, one-of-a-kind present that surprises your loved ones, it probably won’t be the thing that gets the most gratitude or long-term use. Sometimes getting something simple (and even cheaper) can be just the ticket. Focus on what the person needs and will use regularly.
Myth #3: It’s only once a year, so it’s worth the money.
Fact: Gift-giving occurs several times a year, not just on holidays: birthdays, anniversaries, weddings, showers, new jobs, etc. The list goes on and on. So, remember to include those occasions when planning your budget. Keep in mind racking up your credit card balances means interest charges pile up too, especially if you don’t pay off your cards in full each month. You might end up paying for your holiday gifts all year long if you’re not careful.
Tips for financial success
Track your spending. Create a budget, stick to it, and check your accounts daily.
Shop around. If you find the perfect gift, check different retailers for the lowest price. Keep looking at prices even after you buy because if the item goes on sale or drops in price, you still might be able to get the discount.
Get financially fit. As a Military Service Member, it’s important to stay on top of your finances. To learn more about making healthy financial decisions during the holidays and all year long, explore the PsychArmor Institute’s new financial wellness courses.
---------- About the Author ----------
Sarah Steward, of the Henry M. Jackson Foundation, is a Social Health Scientist for the Consortium for Health and Military Performance (CHAMP) at the Uniformed Services University of the Health Sciences (USUHS).
Disclosure: The opinions and assertions expressed herein are those of the author and do not necessarily reflect the official policy or position of USUHS or DoD. The contents of this publication are the sole responsibility of the author and do not necessarily reflect the views, opinions, or policies of The Henry M. Jackson Foundation for the Advancement of Military Medicine, Inc. Mention of trade names, commercial products, or organizations does not imply endorsement by the U.S. Government. The author has no financial interests or relationships to disclose.
Sarah Steward, of the Henry M. Jackson Foundation, is a Social Health Scientist for the Consortium for Health and Military Performance (CHAMP) at the Uniformed Services University of the Health Sciences (USUHS).
Disclosure: The opinions and assertions expressed herein are those of the author and do not necessarily reflect the official policy or position of USUHS or DoD. The contents of this publication are the sole responsibility of the author and do not necessarily reflect the views, opinions, or policies of The Henry M. Jackson Foundation for the Advancement of Military Medicine, Inc. Mention of trade names, commercial products, or organizations does not imply endorsement by the U.S. Government. The author has no financial interests or relationships to disclose.
