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It’s the most wonderful time of the year. And for many of us, the most expensive. Simply thinking about the gifts that need to be purchased or the expensive flights that we still haven’t booked can feel overwhelming, to say the least.
Setting a holiday budget sounds great, but it can be hard to know where to start.
So, I called on the expertise of content creator and founder of the online platform Break Your Budget, Michela Allocca. She shared tips for stretching our dollars and making smart decisions with our money during this spendy time of year.
Her advice, ranging from nixing obligatory gifts to creating a holiday “sinking” fund, is something I wish I’d heard sooner. (Alloca starts saving for the holidays in January, but it’s not too late for the rest of us.)
Alloca also shared a few of her favorite budget-friendly gifts, including a luxurious-looking laundry detergent that I’ve already added to my cart.
And if you’re looking for a few additional thoughtful gifts that don’t cost a fortune, we’ve put together gift guides for thoughtful items under $10 and under $50.
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Protect your future self
Allocca advises tracking your purchases and making notes of the gifts you’ve bought or the holiday sales you’ve shopped.
“During this time of year, people throw caution to the wind. What ends up happening is you start the new year with a major spending hangover. If you were tracking expenses now, you can stay on top of it, and it will help you make more agile decisions when you are out shopping or going to a holiday event,” Allocca said.
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Start a holiday-specific fund
Allocca starts putting aside money for holiday expenses, like gifts, in January. But if you’re like me and haven’t thought that far ahead, there’s good news and bad news.
The good: She says that it isn’t too late to start saving for your holiday purchases.
The bad: you might need to cut back on “day-to-day little spends”.
“If you’re planning to still buy gifts, I would do a two-week flash save where you’re cutting out your morning coffee or skipping going out to dinner for two weekends in a row,” Allocca said.
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Ask if you really have to buy it
Gift giving is one of my love languages, but I’m learning that doesn’t mean that I need to purchase a gift for everyone I’ve ever met.
“We have to be more intentional about the money we’re spending on other people,” Allocca said.
It’s OK to skip out on spending on a present out of obligation or feelings of guilt. Alloca recommends focusing on choosing thoughtful items for the most important people in your life.
And if you’re looking for an all-purpose present for those unavoidable occasions where you simply must give something, Alloca recommended this laundry detergent; it’s fancier than what most of us would buy for ourselves, and you know the recipient will make good use of it.
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Use cashback rewards to plan for next year
I’m a huge planner, often mapping out my entire year on 1 January. So, this next tip from Alloca is one that I’m definitely stealing.
She advises taking advantage of cashback rewards sites and apps, which give you rebates or points that can be redeemed for cash. (While some of the particulars from this 2011 story are out of date, the advice about using these sites and apps sensibly holds up). Instead of immediately spending the money you’ve earned on gifts you buy this year, Alloca advises putting the cash into a high-yield savings gift fund. This will give you a huge jump start on budgeting for the next holiday season.
“It seems silly to plan for the holidays in January, but it will make your life so much easier by the time you get to the end of the year,” Alloca said.
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When in doubt … homemade gifts are great
“We need to bring those back. I like giving sourdough as a gift.”
Read our guides here:
Gifting help: for the style-obsessed
For our fashion gift guide, we rounded up a slew of fashion experts ranging from stylists to content creators, people whose closets we’d definitely raid.
And they shared the 27 best items to gift this season, including a bomber jacket to achieve the coveted model off-duty look and a trendy hooded scarf.
Read our guide here: The 27 best fashion gifts in the US – curated by our favorite stylists and creators
On the go: global gifts
If you know someone with a serious case of wanderlust, but can’t afford to fund their dream trip to Italy, consider one of the thoughtful travel gifts recommended by journalists from around the world. The Korean skincare, cookies (or should I say biscuits) from London, and 19 other unique gifts are the next best thing to a (much more expensive) plane ticket.
Read our guide here: The 21 best gifts beloved globally that Americans are missing out on
Gifting help: the person who already has everything
Sometimes gift-giving requires a bit of creativity. And this is especially the case when trying to find a holiday gift for the person who seems to already have a closet full of the trendiest items or all of the latest tech upgrades.
Lifestyle writer Marissa Miller offered some inspiration, recommending a classic pair of earrings that will go with everything and a custom paint-by-number set.
Read the full story here: The 15 best gifts in the US for the people who already have everything
One-stop shop: 163 holiday gifts for everyone on your list
Need a holiday gift idea or two? How about 163?
We curated a list of gifts recommended by the Guardian newsroom, Filter US contributors, content creators, and kids and tweens – resulting in a one-stop shop of products to help you check off everyone on your list.
We’ll continue to update our guide throughout the holiday season, recommending even more gifts to help you avoid purchasing a last-minute gift card on the drive over to your office holiday party or family gathering.
Read our guide here: The 163 best holiday gift ideas for 2025, vetted by the Guardian US staff
