The Joys of Holiday Gift Giving

Regardless of faith or spiritual beliefs, giving (and receiving) gifts has been a part of our history that has brought about joy, expressions of gratitude, and peace.

Christians give Christmas presents as a symbolic tribute to baby Jesus. Jewish families give gelt and other gifts for Hanukkah. Iranians give Nowruz presents to ring in their new year and the beginning of Spring. These and so many other cultures and religions have gift-giving embedded in their traditions.  Ultimately, the end-result leads to excitement around the holidays, happy children, and a sense of deep fulfillment.

Did you know that one of the roots of giving presents goes back to the ancient Roman festivals of Saturnalia, where the agricultural god Saturn was thanked for the bounty of the year. This usually happened in the month of December. Social standings were ignored during the festivities, such that people of all classes were considered equals. Also, the more modest the gift given, the stronger the bond of friendship it was said to represent.

Current Trends of Gifting

But let’s explore our happy bubble a bit further.

How mindful are we when buying gifts for family, friends, and co-workers? With constant marketing tactics like Christmas decorations in August, irresistible ads aimed at kids, and social media pressure to ‘one-up’ each other on gifts we give, it’s easy to go off track financially, and fall into debt.

According to a post-holiday survey by WalletHub, in 2021, about 30% of Americans said they overspent during the gift giving season.

Over 35% of consumers went into debt, spending an average of about $1,000 on holiday related purchases, with more than $650 spent on gifts for friends, family, and co-workers. (And these were numbers specifically reported only for those buying Christmas gifts!)

Installment buying options of ‘buy now, pay later’ lead consumers to spend more than they could afford, and almost 57% of people shopped online in 2021 for Christmas gifts, using their credit cards. Credit cards remain the most popular type of holiday debt, with 62% of borrowers using plastic to make their purchases, per Marketwatch.com.

Credit cards are one of the most expensive ways to borrow. The allure of only making monthly minimum payments coupled with high interest rates most often results in ballooning debt. Repaying the debt is a whole other story, perhaps for a different post in the near future. Sadly, when the debt accumulates to the extent that it’s unmanageable, hard-working people end up resorting to options such as debt settlement or even bankruptcy.

Usually, in the early months of the new year, my office has to explain to those who are finally overwhelmed with debt, that their holiday purchases would not be dischargeable in a Chapter 7 bankruptcy if they filed within the first 3 months of spending.

Ok, so the point of this article is not to rain on the gift-giving parade! The point is to bring awareness and mindfulness to the beautiful act of giving.

How to Give Without Falling Into Debt

If you are a parent, then you’ve probably at some point considered the value and importance of teaching your children about money: earning, saving, spending, and giving.

If that is true, then why not start that valuable lesson this season, by modeling it for them?

Whether we like it or not, our kids are always watching us, even when we think they’re not, and as the saying goes, ‘monkey see, monkey do’.

5 Tips to Model Responsible Gift Giving

  1. Set a Budget: if you have children, include them in having each member of the family set a reasonable budget to spend on gifts. Not only does this make it easier to allocate specific amounts per recipient, but it will also awaken your creative juices on how to be smart with your spending.
  2. Make a List of Whom You Will be Giving a Gift: When kids watch this in action, and prepare their own lists, it intrinsically teaches them valuable lessons about the meaning behind giving, as well as the concept of ‘splitting the pie’ to make sure everyone gets something. For adults, this list will give you a better idea of how much to allocate per person based on your budget.
  3. Personalized Gifts can be more Economical: this is the time to put your Pinterest boards to good use! If you spend a little extra time thinking about the personality of each recipient on your list, you’ll be surprised at the unique gift ideas you’ll come up with, which won’t necessarily break the bank. Also, children can feel proud about gifting their own crafts or artwork to those they love.
  4. Don’t Forget about Experiential Gifts: There are so many ideas online for this, but the point is that we are ultimately social beings, and receiving a gift of someone’s precious time and undivided attention is always more meaningful than yet another gift card or boxed present. Children cherish memories more than gifts. You can encourage your kids to gift ‘a-day-with-me’ cards, child-led art classes for their grandparents, or ‘let’s bake together’ cards. Encourage other family members to also consider giving experiential gifts, and enjoy a year of new and everlasting memories together.
  5. Shop Early to Avoid Impulsive Purchases: When we wait too long, the pressure of buying the perfect gift builds up, combined with the busy atmosphere at the stores, and not wanting to stand in long lines. All of this leads to less thoughtful and more impulsive purchases. If you’re buying gifts online, do it early enough so that you can take advantage of slower but free shipping costs.

Bottom line, take control of your financial health before it starts to control you! Happy Holidays now and throughout the year for everyone!

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Nikki Hashemi
Nikki has lived in Iran, Austria, and Canada. She moved to Los Angeles at 20 years old to attend Loyola Law School and is now proud to call Ventura County her home. She homeschooled both of her children for 5 years and got her Life Coach Certification with an emphasis in Neurolinguistic Programming (NLP). Nikki is the proud owner and principal attorney at Interplay Legal Solutions, Inc. She passionately serves families with minor children with their estate planning needs, and represents individual debtors in Chapter 7 and Chapter 13 Bankruptcy Proceedings. In the social media world, she is @parentmindsetlawyer . In her spare time, she volunteers at the Conejo Free Clinic's legal department, and loves networking with people from all walks of life. When Nikki is not at her computer, she can be found volunteering at her children's school, tending to her succulent collection, or spending quality time with her husband and two daughters. Nikki is fluent in Farsi and is trying hard not to lose her fluency in German!

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