The Best Gifts Don T Come Under The Tree? 97 Most Correct Answers

If the mountain of gifts in the living room blocks your view of the Christmas tree, strains your budget and tortures your soul, there is another way.

Inspired by the idea that Jesus received three gifts from the wise men on December 25 — gold, frankincense, and myrrh — many parents say they also want a triple Christmas gift for their children.

Some do it for religious reasons. Others try it to save money, relieve the stress of the holidays, or escape the commercialism that pervades the holiday season.

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Stacy Myers, a mother of two who lives in Marion, Virginia, said all of these factors played a role when she and her husband adopted the rule after the birth of their first child.

Annie Myers opens her “gift of incense” – a nativity scene – in 2011. Courtesy of Stacy Myers

“We’ve decided to simplify Christmas here in our home by applying the three gifts rule so we can focus on the real reason for the holiday season, which is the birth of Jesus, rather than ‘Give me, give me ‘Give me’ and ‘What can I put on my list?’” Myers said.

“It’s just a matter of changing the way you think about how you see this time of year — switch it to family and your faith instead of stuff, because stuff just keeps piling up in your house.”

Related: What 3 gifts to get? Consult our TODAY Gift Guide!

Myers, who describes herself as a “debt-free, frugal housewife” and shares household tips on her blog Stacy Makes Cents, said the three-gift rule is also a great way to save money over the holidays. She gasped after the results of a Gallup poll that found the average American would spend $786 on Christmas gifts this year.

“Oh my god, no,” she said, noting that the family gives a lot of homemade gifts. “That’s shocking.”

Stacy and Barry Myers hold their children, 1-year-old Andy and 4-year-old Annie. The couple started their Christmas tradition with three presents when Annie was born. Courtesy of Stacy Myers

Glennon Doyle adopted the three gifts rule when she realized that she was spending so much time buying gifts and decorations that she didn’t have many moments to just enjoy the holiday season. So a few years ago, the mother-of-three and “Love Warrior” author sat down with her kids to tell them something had to change.

“My kids didn’t even ask for things they wanted. It was just the commercial telling them to have this thing,” Doyle said.

“All these gifts end up on the donation heap or in the garbage anyway. The morning gift rush is like a sugar rush. It’s great for five minutes and then it’s over.”

Melton now asks her children to make a list of things they want, something they need, and something to read. There’s also a bonus in her version of the Three Gifts Christmas: She asks each child to come up with a gift idea for someone in need.

Related: How a 3-Gift Christmas Makes Our Holidays Less Stressful

Many families are adapting their approach to the rule.

Myers models her list after the wise men and gives her children a “golden” gift or something a child will want and cherish, like a favorite toy; an “incense” gift or a gift used in worship or spiritual life, such as a Bible; and a “myrrh” gift that is something for the body, such as clothing or shoes.

“When I see other people and then see how we do things here, I can say that it seems like our Christmas isn’t that stressful,” Myers said.

“When I think back to my childhood, I don’t remember what I got for Christmas. But I remember the things we used to do together, like going out and looking at the Christmas lights or baking cookies with my mom.”

Whether you choose to limit gifts or not, hold a family reunion about what your kids actually want so their wish list is thoughtful and created from their own desires, rather than commercials on TV, Doyle advised.

“You have to do what makes your Christmas happy and peaceful,” she said.

Editor’s Note: This story was first published on December 16, 2013 and has been updated.

Now that you know what not to give as gifts, it’s time to figure out what gifts your friends and family actually want. These gadgets are on everyone’s bucket list, so you can’t go wrong. Or consider these beautiful (and inexpensive!) home decor items from stores you might have thought would break the bank. And of course you can’t go wrong with some fun and clever stocking fillers!

It is often said that gift giving is a form of art. The choice of gift and even the way you present it (type and design of the paper, bow or no bow, etc.) is meant to be an expression of self, whether a conscious expression or not.

While some people find this art form easy, others may have trouble deciding on the perfect gift. But the secret is, it doesn’t have to be the most expensive or the biggest item in the shop. While gifts of this nature are welcome, sometimes it’s the smaller, more meaningful gifts that are most appreciated by the recipient. They may understand that you put more thought and effort into the gift, and it shows that you really know and care about them.

Whether you’re trying to say “congratulations,” “thank you,” “happy birthday,” or something else entirely, we’ve shown how you can give that special someone a truly meaningful gift.

How to give a meaningful gift

Think about who you are buying for

If you’re looking to give a personal, thoughtful gift, the first thing to consider is who you’re buying for. It’s very likely that the gift you would buy for a family member or close friend would be different than what you would buy for, say, a distant relative or friend you haven’t seen in a while.

The most meaningful gifts are those that are truly tailored to the recipient, perhaps reflecting their personality, hobbies, interests, or likes and dislikes. Are you wondering what they like to do in their free time? Maybe they’re an art lover, bookworm, avid traveler, petrolhead, self-care enthusiast, or home gardener. Your friend who loves crime novels might be thrilled to receive the latest spine-tingling bestseller. For those who love to be pampered or deserve some me-time, why not create a personal basket full of their favorite beauty products and toiletries? Not only does this make the gift more personal, but it is also something you know they can use and enjoy.

Consider the occasion

The occasion or reason you are buying the gift may also affect your choice. For example a birthday gift as a thank you or any other gift, a wedding or anniversary gift should be suitable for a couple and not just for one person.

The occasion might help give you some new ideas. A 30th wedding anniversary gift, for example, is also known as a pearl anniversary, and you may be able to get a meaningful gift that somehow contains pearls. Remember, your gift doesn’t have to break the bank. For example, you might consider creating a booklet of “pearls of wisdom” or a bouquet of “pearl” roses (the Floribuna variety). Both make sense, but don’t have to cost a fortune.

Think of a budget

Which brings us to our next point: budget. You don’t want to spend too much money on a gift, but ultimately you want to buy an item that the recipient might not necessarily be buying for themselves. The budget can depend on the occasion (e.g. you would probably choose a larger gift for a wedding than a thank you) and the person (e.g. you spend more on a close friend than on an acquaintance). It’s good to have a price point in mind before you start shopping.

make it personal

Personalized items are all the rage, from pillows with a family photo to engraved jewelry. Personalization can transform a beautiful gift into a thoughtful, unforgettable keepsake. When a new baby arrives, you may wish to have their name and date of birth engraved on an item. Alternatively, you can buy personalized photo frames and insert a picture for the new parents. These ideas range in price from very reasonable to more expensive, but either would make nice gifts.

Personal items do not simply have to be bought either. If you have time, you can make your own gifts. This could be a basket of freshly baked goods, a scrapbook full of photos and memories, a hand knitted product, or even home brewed cider.

Be practical

It has been shown that gift givers sometimes focus too much on how a person will receive the gift and want to increase its appeal rather than giving something that is more practical or personal. For example, you might think that it’s better to give away a coupon to an expensive restaurant far away than a coupon to a cheaper nearby restaurant. It may seem more expensive from the donor’s point of view. In reality, the experience could be just as enjoyable at a restaurant that’s more convenient to get to.

Finding the ideal gift isn’t always easy when you’re looking for inspiration, but once you start thinking outside the box and getting creative with your gift, you’ll have a lot of fun shopping. It will be worth seeing the look on their face when they receive their meaningful gift. We hope that our tips will help you find the perfect meaningful gift for someone special and that they will love it as much as you loved choosing it.

As Christmas gift season approaches, we’re often filled with a sense of dread: how are we ever going to find the perfect gift for everyone on our list, the time to finish our shopping, and the money to pay for all the things we which we need? to buy?

Some Americans are saving money and sanity by changing their gift-giving traditions, and in some cases eliminating gift-giving altogether.

“I just gave up completely,” says Sandy Smith, a human resources specialist in New York City who blogs at Yes, I Am Cheap. A few years ago, when she realized she’d blown a sizable bonus on gifts people had long forgotten, she told her parents, brother, and sister that she wouldn’t buy them any more Christmas presents, and she didn’t want that they didn’t buy anything either.

Instead, she would take the family out to dinner at her expense. Since then, her brother has been financing the trip with her, which the family looks forward to every year.

“We enjoyed going out and hanging out and enjoying different cultures and cuisines,” she says. In her first year, she took the family to an authentic Chinese restaurant in New York City’s Chinatown. “It was such an exotic experience for my parents and they loved it,” she says. “We introduced them to different foods all over the city. They had a great time traveling the world through food.”

Holiday traditions are important to many people, but you may find that your relatives are happy to stop exchanging gifts, especially as the family grows.

“It’s all about time, money and energy,” says Stefanie O’Connell, founder of personal finance blog The Broke and Beautiful Life. “I think the process of giving all three things takes a toll.”

She suggested to her four siblings a few years ago that they should stop giving each other Christmas presents and focus on their parents and older relatives. Not only did she save money, but she found she had more time to spend with her family because she didn’t go shopping. Your friends are drawing names for a secret Santa exchange, and they have the added bonus of enjoying the get-together where they swap presents.

Some families find it easy to limit gift-giving among adults, but still want to make their kids’ vacations magical. But buying fewer things might be better for your kids, says Andrea Deckard, mom of three in Cincinnati and a writer at Savings Lifestyle.

She and her husband decided a few years ago to only buy each of their three boys four gifts a year: something they want, something they need, something to wear and something to read. They coordinate with grandparents and other relatives so that if someone else in the family buys one of the boys a jacket, the parents can get him socks or underwear, for example.

“We want to make sure they don’t get too much trash,” says Deckard. How do the children react to fewer gifts? “It’s not as much of a problem as some people might think,” she says, adding that her sons, who are now 8, 11 and 16, learned from the experience. “Our kids are realizing now that it’s stuff and we don’t really need all that stuff at this time of year.”

Exiting the gift merry-go-round begins with an open discussion with friends and family.

Smith, whose blog chronicles her journey to paying off $120,000 in student loan debt and a failed business venture, has been vocal about her less stuff, more time philosophy in recent years. She thinks it frees her friends from worrying about buying her something because she’s buying them something.

“It turns into this crazy thing where they don’t really give you a gift because they want to, but because it’s a pre-emptive strike,” says Smith. “If you publish it, it makes things easier for everyone. … I think a lot of people want to go back to simpler things. I don’t think people will protest much.”

Here are seven ways to cut down on Christmas gift giving while saving time, money, and stress:

Set a realistic budget, then figure out how to stick to it. Many people buy gifts without calculating their total expenses and are surprised when the bills arrive. “Being honest about what those numbers look like is one way to ground yourself,” says O’Connell. “You don’t want to pay your Christmas bills when spring comes.”

Talk to your significant other about alternatives. O’Connell and her boyfriend used the money they would have spent on gifts to travel together. Other couples might prefer a movie night or a romantic weekend at home.

Suggest to relatives and friends to stop or limit gift exchanges. Some families may draw names for gift exchanges, hold a secret Santa drawing, set dollar limits, or stop giving gifts altogether. Others, like Smith’s family, may do things together instead of exchanging gifts. “It was better for my relationship with my family,” says Smith. “The experiences were so much better than the gifts I gave.”

Coordinate gifts for children with other friends and family. Deckard’s family members keep in touch to try to limit the gifts they buy to things the children really want or need. If your child wants something expensive, maybe all the relatives will go in and buy that one gift instead of buying individual gifts.

Refrain from exchanging office gifts. Bake cookies for co-workers or write everyone a note about what you appreciate. O’Connell, who works in theater as well as writing, gave up after noticing how worried some colleagues were about the gift exchange. “The Secret Santa became this financial stressor that people didn’t enjoy,” she says.

Ask your relatives if they prefer alternatives to gifts. Many older people no longer want to. Grandma might have all the sweaters she needs, but maybe she really wants you to come over for dinner one night or clean her gutters. Or maybe all the relatives go together and buy a year of house cleaning for the grandparents. Young families can appreciate a babysitter, and teenagers can really enjoy a trip alone with a relative.

Billions of people around the world eagerly await Christmas every year. Still, this one will no doubt be unlike any we’ve seen so far. Because of the ongoing COVID-19 pandemic, many things will be very different this year, including Christmas spending statistics.

In this article, you’ll find everything you need to know about the latest happenings around Christmas (both pre- and post-COVID), including average household spending, budgets, gift shopping, and more!

If you like what you hear, just keep reading!

Top 10 Christmas Spending Statistics for 2022

Parents plan to spend an average of $276 per child on Christmas gifts in 2021.

10% of Europeans go into debt for Christmas shopping.

1 in 10 people return their gifts in store.

41% of Americans are willing to go into debt to buy gifts.

$15.2 billion is the estimated total of unwanted gifts.

America is expected to spend nearly $6.1 billion on Christmas trees.

In 2021, 21% of Americans plan to spend less money on Christmas gifts.

Americans will spend an average of $886 on Christmas gifts.

Women spend an average of 20 hours shopping for Christmas presents.

56% of US consumers want to receive a gift card as a gift in 2021.

US Christmas Spending Trends

What makes Americans different from other buyers? On average, how much do they spend on Christmas presents?

1. In 2021, the Christmas Price Index (CPI) was $41,205.58.

(PNC)

The Christmas Price Index shows the current cost of gifts given in the song “The Twelve Days of Christmas”.

In 2021, the US Christmas Price Index (CPI) was $41,205.58. That’s a 5.7% growth compared to 2019 ($38,993.59).

2. In 2021, Americans will spend an average of $886 on Christmas gifts.

(gallup)

How much does the average person spend on Christmas? This holiday season, Americans plan to spend more money on holiday gifts than they have in the last 20 years – an average of $886.

More than half (56%) will most likely do their Christmas shopping via online stores. Others are most likely to buy their gifts from discount stores (29%), department stores (24%) and specialty stores (18%).

Mail order catalogs are a preferred option for only 6% of American holiday shoppers.

3. American parents plan to spend an average of $276 per child on Christmas gifts in 2021.

(Statista) (credit cards)

It seems that some parents would even rob a bank to keep their kid happy. Jokes aside, according to the data, the average Christmas spend per child in 2021 for parents with children was $276, while spouses without children paid out $251.

Either way, since 17% of US parents were willing to spend over $200 on kids’ gifts in 2020, that’s quite an improvement.

4. 25% of Americans planned to do their Christmas shopping in early 2020.

(US Today)

Namely early November, due to the increasing number of people wanting to stay away from crowds and avoid potential bottlenecks caused by lockdowns.

Home Depot kicked off its holiday sales on Nov. 8, and the Amazon company’s latest data confirmed it needed an additional 100,000 employees to meet surging holiday demand. Likewise, FedEx hired 27% more seasonal workers in 2020.

5. Holiday spending 2020 vs. 2019 – despite the pandemic, holiday sales increased by 8.3%.

(NRF)

Retail sales during the holiday season posted an unexpected 8.3% increase compared to the same period in 2019.

People have been able to save more money due to the lockdowns, early payments, travel restrictions, etc. and are keen to spend it.

US holiday sales in 2020 were $789.4 billion.

6. In 2021, 21% of Americans plan to spend less on Christmas gifts.

(credit cards)

According to a survey, while one in five Americans plans to spend less this holiday season, 48% will continue to spend the same amount as last year. 13% of Americans plan to spend even more on Christmas gifts than they did last year.

Mastercard forecasts that Christmas sales will be 7.4% higher in 2021 compared to 2020. Deloitte forecasts a similar increase (7%-9%).

7. In 2021, Americans are expected to spend nearly $6.1 billion on Christmas trees.

(Finder)

46.9% of US households will continue the tradition of buying Christmas trees this year. In other words, Americans will spend an average of $83.39 per household for a real tree and $118.08 for an artificial tree.

8. Christmas spending statistics show that clothing and household items are the most unwanted gifts.

(Finder)

If you want to avoid giving someone a gift that won’t impress them in any way, try avoiding clothing and household items as gifts. These two top the list of unwanted gifts at 43% and 20%, respectively.

The safest bet? Probably food or drink because only 4% of shoppers are wrong.

9. In 2019, 56.3% of Americans set a holiday budget, but only 64% actually stuck to it.

(cheerful fool)

The 2019 Holiday Shopping Facts shows that 29.6% of no-budget shoppers spent much more than originally planned — about $992.33 on average. On the other hand, those who actually had a budget spent an average of $878.21.

10. Women spend an average of 20 hours shopping for Christmas presents.

(WEF)

Men, on the other hand, spend only half the time shopping. The combined average shopping time for men and women is around 15 hours.

According to Christmas spending statistics, over three hours of that time is spent queuing. Another three hours are spent wrapping gifts for friends and family.

Also, after the holidays, people spend an extra hour bringing gifts they don’t like back to the store.

11. Friends are the worst Christmas shoppers when it comes to unwanted gifts.

(Finder)

23% of people have cited their own friends as a source of unwanted gifts. In-laws take second place on the above list at 14%, and parents come third at 7%.

Also, Gen Xers seem to get the worst gifts when it comes to age, with 44% of them not liking what they’re receiving. However, holiday spending facts show that Gen Xers also spend the most ($121.90) on gifts that turn out to be unwanted.

12. $15.2 billion is the estimated total of unwanted gifts.

(Finder)

About 61% of Americans expect to receive a gift they don’t like, which equates to about 154 million dissatisfied people. The thought counts, right?

13. American Christmas spending varies greatly by state.

(cheerful fool)

How much the average American spends on Christmas depends largely on the region they live in — and surprisingly has nothing to do with average American domestic income.

For example, Alabama, Mississippi, and Louisiana topped the list with median spends of $1,127.58 despite having some of the lowest median incomes.

Meanwhile, North and South Dakota, Minnesota, Kansas, Nebraska, Iowa, and Missouri are at the bottom of the list, spending an average of $714.47.

14. 56% of US consumers want to receive a gift card as a gift in 2021.

(NRF)

It is estimated that Americans will spend $28.1 billion on gift cards this year. Most people opt for restaurant gift cards (32%), department store gift cards (26%), bank gift cards (26%), coffee shop gift cards (20%), entertainment gift cards (15%), and online merchant Gift Cards (15%).

Worldwide Christmas spending statistics

How much money do people around the world spend on Christmas presents?

15. Brits spend 40% more than other European Christmas shoppers.

(WEF)

The average amount spent for Christmas 2020 was around $743, which is much more than the average European consumer. In addition, chocolate, cosmetics and perfume top the list of choices for adults, while books and sportswear are the most common gifts for children.

In addition, 44% of all gifts should be bought online.

Christmas shoppers in the UK are famous for their festive spirit and have no regrets when it comes to spending. A recent survey found that 16% of shoppers can’t remember exactly how much money they spent after completing their purchase.

16. In 2021, Brits plan to spend an average of $726 on Christmas gifts.

(Finder)

At the same time, 69% plan to spend less on Christmas gifts in 2021. Namely, 27% will set a price limit with family and friends, 14% will reuse gift wrap, 9% plan to give a bargain experience, and use Secret Santa.

8% will buy used gifts, use re-gifting, wait for Boxing Day sales, or give away freebies.

17. Christmas debt statistics report that 41% of Americans are willing to go into debt to buy gifts.

(credit cards)

45% say they are willing to go into debt to make themselves happy, 41% do so to make their children and spouse happy, while 44% go into debt to make another friend or family member happy close.

Over half of them (60%) say they would add their new holiday debt to the debt they already have, potentially leading to bankruptcy.

18. 10% of Europeans go into debt for Christmas shopping, but facts about Christmas spending show they can’t outperform Americans.

(WEF)

This varies from country to country. In Luxembourg and the Netherlands, for example, this figure is relatively low – only 3% and 5% respectively – while in Romania it is a whopping 19%.

The truth is that 40% of Europeans feel pressured to spend more than they normally do.

The situation in the US is even worse. A staggering 22% of Americans succumb to this temptation and fall into debt every Christmas. This can badly affect their credit score and even result in needing help from credit repair services.

19. Unfortunate gifting statistics say that 1 in 10 Europeans bring their gifts back to the store.

(WEF)

In fact, 15% of Europeans receive gifts they don’t like. 1 in 10 of them replaces the gift. Another 10% say they don’t even remember what they got for Christmas.

So it shouldn’t surprise us that around 14% of people sell their gifts.

20. The average UK household spends an extra £740 (about $1,021) every December.

(Bank of England)

The average UK household spends around £2,500 (or around $3,289) a month. However, consumer spending for Christmas 2019 shows that more money was spent in each category; Spending on alcohol increases by 38% during the festival month.

21. Only 37% of Australians plan to cut their Christmas budget in 2020.

(Finder)

In the country Down Under, only 37% of people reassessed their spending, while 56% of people in South Africa did the same.

Likewise, 52% of people in the Philippines and 47% of people from India and Hong Kong wanted to spend less money on Christmas.

22. Christmas shopping statistics show that 63% of Poles will reduce their Christmas spending in 2021.

(The first news)

More than half of Poles plan to limit their Christmas spending this year, according to a survey conducted by the Polish Bankers Association, but 26% will not control their holiday habits. With that in mind, Poles plan to spend an average of $346.39 (€308) on Christmas gifts.

23. In 2021, Australians plan to spend an average of $1,232 on Christmas gifts.

(Finder)

In terms of states, the Victorians are expected to spend the most ($1,373), followed by New South Wales ($1,361), Queensland ($1,146), South Australia ($1,112) and Western Australia ($1,037).

Most money is spent on gifts ($374 per person), food ($308) and travel ($269).

24. Christmas spending statistics show that clothes, shoes and accessories were the most desired gifts in Italy.

(Statist)

In 2020, 42% of Italians preferred clothes or shoes as a Christmas present. Another 22% wanted to buy books and magazines, while 20% opted for children’s toys.

Only 13% were excited about getting a new smartphone or phone accessory. Groceries (16%) and personal care products (17%) were more desirable than gadgets.

25. UK 2020 pre-Christmas spending fell 2.3% in December.

(The drum)

That was the biggest drop since June 2020. Additionally, in-store spending fell 8.3% due to the pandemic and the inability of shoppers to leave their homes. On the bright side, online retail sales are up 52.2% and accounted for 46.8% of all retail spending in December.

26. Online retail sales in Brazil generated approximately 3.76 billion Brazilian reals during the holiday season.

(Statistics) (Statistics)

Despite the pandemic, online retail sales in Brazil recorded a 44.6% increase in 2020 compared to 2019.

Based on holiday statistics, 65% of people planned to spend less and 11% more money on the upcoming holidays.

27. 5.89% of Hungarians plan to buy (almost) all their Christmas gifts online.

(Statist)

On the other hand, 44.86% of the respondents said they would like to buy almost all gifts from offline stores, and 49.25% plan to buy their Christmas gifts from both online and offline stores.

frequently asked Questions

How much per person to spend on Christmas gifts?

Experts recommend that people should spend about $100 on their partner’s gifts, $75-$100 on gifts for their parents, and $50 on a brother or sister’s gift.

When it comes to your friends, $15-$25 is a good sum to spend. Hosts and teachers should receive gifts worth between $15 and $25. Unless you get something as a group. In this case, the amount can range from $10 to $12.

If you’re on a tight budget, make a list of possible gifts, opt for group gifts, and look for bank discounts.

What does the average person spend at Christmas?

The average American is expected to spend around $886 on Christmas gifts. Additionally, based on NRF projections, this year’s vacation spending is expected to grow 8.5-10.5% to reach a staggering $859 billion.

What percentage of Christmas shopping is done online?

Recent statistics show that 56% of Americans are “very likely” to buy their Christmas gifts online, while 76% are “somewhat likely” to do the same.

On the other hand, 29% and 24% of Americans are “very likely” to shop at discount and department stores.

How much does the average person spend on Christmas per child?

American parents spend an average of $276 on their children (under 18) and $251 on themselves. In 2021, 48% of parents plan to spend the same amount of money. At the same time, 21% plan to spend less and 13% intend to spend more.

The average Christmas spend per child in 2020 was also over $200, but for only 17% of parents.

Additionally, 41% of people are even willing to go into debt during this holiday season.

The most coveted toys among children are LEGO, Barbie, cars and trucks, dolls and video games.

How much can you spend per child on Christmas in 2021?

While there are no written rules, experts believe you shouldn’t exceed $75 when it comes to children under 18. If you’re on a budget, spending $200-$300 on your kids’ gifts is not a good idea. So what can you do?

Be open with your kids and explain to them why their gifts won’t be expensive this year. This can be difficult if you’ve given them expensive gifts in the past because they expect to get the same amount of gifts every year.

What was the average spending on Christmas per child in the UK in 2019?

According to a survey, Brits spent an average of £100 ($139.33) per child, while UK households spent an average of £363 ($505.77) on Christmas presents.

The smallest amount spent on Christmas presents was £25 ($34.83), but some people went overboard and spent a whopping £2,000 ($2,786) on presents alone.

When it comes to British teenagers, they usually receive around £150 ($208.99) worth of gifts. The budget for small children and babies was much smaller.

How much do couples spend on each other at Christmas?

Americans plan to spend an average of $251 on gifts for themselves and their partners. Experts somewhat agree with this sum. They recommend that people should spend around $100 on their spouses, $75-$100 on their parents, $50 on their siblings, and $75 on their children.

Last look at Christmas spending statistics

How has the pandemic changed preferred holiday habits? Apparently we haven’t saved a bit, which can be a good indicator that not much has changed in terms of gifting in the “new normal”.

We’re confident that our top Christmas spending stats will have you both excited and better prepared for this year’s holiday season. Still, don’t forget to take a deep breath, spend some more time with friends and family, and most importantly – have fun! It’s Christmas after all.

Sources:

Giving is a lifelong activity, so it pays to learn how to do it well. That’s right, giving isn’t an innate sense that you either have or don’t have; You can learn how to give great gifts. It can inspire fear for many, but with a variety of techniques and some effort, your gifts will not only be well received, they will be appreciated.

The formula for great gifts

First of all, the formula for great gift giving isn’t necessarily a formula. It’s a lot more complicated because we’re talking about people after all. That being said, there are certain tactics and behaviors that will help you be a great gift giver, not just a mediocre one. Above all, it requires real effort on your part to get results. If you are afraid to look for gifts, try to spend as little time as possible choosing, or give your gift to others, time will tell.

Giving doesn’t have to be stressful

What a great gift should make

As with any action, it is useful to know the end goal. Put simply, a great gift should be appreciated and welcomed by the recipient. It should be thought out, carefully thought out and selected specifically for the recipient.

10 Techniques That Make Great Giving Possible

1. Pay close attention

This is the most relevant technique of all, and hence number 1. If you’re careful, you’ll almost always get a better gift. But what exactly does that mean? Paying attention means making a decision to be more aware of the potential gift recipients around you and to sift through your interactions with them for ideas. Look for things they admire, are interested in, or want to replace but haven’t done it themselves. At the very least, careful observation will help you better understand a person’s likes and interests. If you have a hard time remembering these observations when giving gifts, create a simple document on your computer or phone and add observations as you come across them. Also, everyone has a camera phone these days, so feel free to snap photos and put them in a folder for future reference.

You never know when a good gift idea will pop up, so don’t limit your attention to specific gift-giving times of the year. Especially with hard-to-find people, you might only come across one or two good ideas a year, so don’t stop looking!

2. Don’t be afraid to ask

A surprise gift rewards the giver with all the appreciation, but sometimes it’s more important to get a gift that the recipient really wants. You’re paying attention, but that doesn’t necessarily mean you’ll have an idea when you need it. If that’s the case, ask people who know the recipient well for their ideas, or ask them directly. You can decide how important your contribution is.

3. Buy in advance (and don’t).

This is a “it depends” scenario. If you find a great gift months in advance before you need it, it can be worth picking up, but with one caveat — it has an intended recipient. Advance purchases can save you from last-minute worries or timing issues (see Technique #4). However, there is one form of advance purchase you should always avoid: buying to have a gift in case you need it. This type of gift has to be generic or generally appealing to pull it off, and this will rarely seem thoughtful once given. You may also end up not using it, which would be a waste of money on your part.

4. Don’t buy at the last minute

Last-minute gift buying might not be entirely avoidable (a sudden invitation to a birthday party!), but for predictable occasions like anniversaries, birthdays, holidays, and weddings, there’s no excuse to buy a last-minute gift. Christmas shopping on December 24th – or any other time crunch – forces you to only buy what’s available at that time. Save yourself the hassle and embarrassment by pulling out your calendar and writing down important gift occasions. Then set a reminder to buy a gift 3-6 weeks in advance so you can browse and send.

Cliche gifts are almost worse than nothing at all

5. Avoid cliches, underhanded or fake gifts

That’s right, dudes, red roses and teddy bears are Valentine’s Day clichés and you know it. Cliche gifts can seem unoriginal and lazy, and it’s best to avoid them entirely unless you can find a more personal twist. Does your wife like flowers? Choose your favorite flower and ask the florist to create a custom bouquet for you. Another cliché is the gift bought by the assistant. You may be a big shot at your business, but don’t delegate your gift-giving responsibilities to your assistant or significant other. Pay attention, find your own ideas and only bring them in to help with the logistics. The same could be said of your wife or partner; Try to play a role in gift giving that comes directly from you.

Sneaky gifts are worth noting as this type of gift can seriously damage your relationship with the recipient. In other words, don’t give gifts that are meant to send a message (intent or not) to the recipient. For example, don’t give away gym memberships (gosh, you’re getting fat) or anti-aging products (you look old!), which will almost certainly be viewed negatively.

Finally, you should not give fake gifts. Homemade gift certificates for a massage or a promissory note (“Let me buy you dinner sometime!”) are not real gifts. Don’t make it the recipient’s prerogative to redeem a gift – how embarrassing for them! If you do, schedule the redemption immediately after the offer so it doesn’t look like a gift you don’t want to give.

6. Don’t buy the same thing over and over again

It’s all our fault. Once you know a gift has been well received, it can be tempting to keep buying it. If your gift isn’t a tradition cherished by the recipient, repeat gifting quickly becomes predictable and boring. There is also a risk of appearing smug or lazy. Make an effort to mix up the old idea or just choose a new one.

An Amazon gift card may be simple, but it’s not original

7. Avoid Gift Certificates (With One Caveat)

Gift vouchers polarize. They can be very welcome at events such as weddings, graduations and housewarming parties as they give the recipient the opportunity to choose a gift that best suits their needs. However, there are other situations where gift cards, especially credit card issued cards that are basically equivalent to cash, again make you look lazy or like it’s not worth looking for a real gift. To be on the safe side, use gift certificates sparingly unless they actually reflect a thought. For example, gift certificates for the spa, a great diner, or your local golf club for a stressed-out friend might be welcome.

8. Spend appropriately

It’s hard to say exactly what “reasonable expense” is because it depends so much on the person and the occasion. If you spend much more or much less than the social norm, the recipient will question the intention behind your choice of spending. Additionally, if the gift is given in a group, it can be embarrassing to be the obvious outlier. If you spend $1000 when $100 is the norm, or similarly spend $10 in the same situation, you will look like you are showing off or being cheap on purpose. However, if you’re on a tight budget, you should spend what you can afford.

A personalized gift basket is thoughtful and simple

9. Gifts don’t have to be bought

…exactly in the form that you want to give them. Personalized gift baskets, a favorite dish ready to go in the oven, or a framed photo are all ideas that require a little more thought and effort on your part. The upside is that these gifts feel extra personal.

Bad vs. good gift wrapping

10. Wrap presents like a grown-up

You’ve seen it before – or maybe you have? – a birthday present wrapped in Christmas paper or a housewarming gift that is unceremoniously stuffed into the free bag from the store. If your gift isn’t Tiffany’s, this sloppy presentation will make up for the thoughtfulness of the content, no matter what they are. You’re not 12 anymore, so there’s no excuse for not wrapping presents properly. That doesn’t mean you have to tie it up with ribbons and make a handmade card; Just buy the appropriate packaging for the gift and spice it up and wrap it neatly. Not sure how to do it? Watch this easy gift wrapping video here.

Gifts for specific people

Give “the man who has everything” something special to consume like this Ramos Pinto 20 Year Tawny Port

For the one who has everything

We all have that person in our lives and buying a present for them is a nightmare. They have everything, want nothing and tend to buy whatever they want themselves. To make matters worse, they cannot give you any ideas even if you ask them what they want. The easiest way to buy a gift for this type of person is to focus on consumable gifts. A bottle of port wine, an exotic blend of spices or a super-premium olive oil can be consumed and thus eventually used up by the recipient. This type of gift is easiest for foodies, but when it comes down to it, a carefully chosen gift card can work, too.

Double Faced Baby Alpaca Scarves – Fort Belvedere Fort Belvedere Alpaca Scarf Double Faced Buy here

For a spouse or significant other

In a cruel twist of fate, sometimes the hardest part can be shopping for your own spouse or partner! Maybe he is the “person who has everything” or he prefers to choose his own gifts. The best way to ensure seamless gift-giving is to have a conversation about what they like and don’t like. Check back after the gift delivery to see how you did. Another great technique for SOs is to get them something they love but wouldn’t get for themselves—a day at the track, a spa treatment, or some other treat or item they would appreciate.

Giveaways can be more of a risk than a reward

For a boss, colleague or client

Giveaways are tricky because they can easily be interpreted as payment for access or influence. They really are best avoided unless they are part of the company culture or the country’s culture, so do your research accordingly. Be aware that some parties cannot accept gifts from subordinates/suppliers/colleagues as this may violate ethics rules. Keep gifts simple, inexpensive, and not too personal. Business-related items, like a beautiful business card holder, are a perfect choice.

People you don’t know very well…or not at all

Visiting a relative for Christmas can mean buying a present for your niece’s new friend you’ve never met. Awkward, right? Even if you can learn a little bit about that person, you’re unlikely to receive a personalized gift. Ask for a specific suggestion or go the gift card route to keep it simple.

10 Great Hostess Gifts

Gifts for hosts or hostesses

A guest favor is a nice way to show your appreciation for a stay or a home-cooked meal. Dinner parties usually appreciate wine, spirits, or some other accompaniment to the meal, or you can get them something for breakfast the next day when they’re recovering from the night before. Check out our guide on how to be a great houseguest for ideas.

Ask parents what gifts are age-appropriate for children

children

Getting gifts for kids can be fun, but it’s always best to ask parents before heading to the toy store. The child may love your gift, but it can drive the parents crazy or worse, create another unforeseen problem that could have been avoided. Be careful with candy, loud toys, replica guns and anything digital.

Gift give faux pas

Don’t give away tickets to events only you want to see

Finally, avoid these gift-giving faux pas and you’ll be in the clear.

Don’t mix and match gifts for the unlucky people who have birthdays, anniversaries or other occasions around important holidays

Be careful when buying clothes that are the right size. If you don’t know for sure the size works, a guess can lead to an offended recipient

gift giving. Yes, everyone will know, and yes, it’s a bad idea.

Don’t use gifts to send a message. Gym memberships and anti-aging creams aside, giving your favorite nephew an X-Box while the others get a coloring book makes your favoritism – not the gift – the center of attention.

Don’t give people gifts for hobbies or activities they haven’t expressed an interest in. Someone who hates cooking a cookbook won’t make them want to cook more, it will only make them wish for a gift receipt.

Used gifts. Unless it is a serious antique for an antique lover, do not give away a used item.

Do not give useful gifts (socks, vacuum cleaner, blender) unless you are sure they will be appreciated.

Don’t give gifts that are really meant for you, like lingerie, a gift certificate to your favorite restaurant, or tickets to a sporting event that only you enjoy. It’s a jerky motion.

Conclusion

What are your gifts that Hangups give? What were your best presents?

One of the best things about being a parent is the hope that one day you will be a grandparent. That’s when the fun really begins. Instead of worrying about raising those grandkids, you can rush by with gifts and candy and repay your kids for all the times they ever teased you when they were kids.

On the other hand, while it’s pretty commonplace for parents to spend big bucks on Christmas gifts for their kids — sometimes racking up expensive consumer debt to do so — the holiday spending rules for grandparents aren’t so clear. We asked ourselves: How much do grandparents actually spend on Christmas presents for their grandchildren?

For the 2018 holiday season, our team at OppLoans decided to find the answer. We surveyed over 1,700 grandparents in all 50 states (plus the District of Columbia) and asked them how much they spent on Christmas gifts, whether they felt their gifts were appreciated, and whether they ever expected the Discontinue all of the grandchildren’s gravy.

Once we had our answers, we broke down the results by state, age, and gender. Here’s what we found!

In which state do grandparents spend the most?

State Amount Oklahoma $339 Connecticut $336 District of Columbia $330 Louisiana $328 California $311 New York $297 Tennessee $285 Massachusetts $282 Maine $270 Colorado $268 New Jersey $261 Mississippi $259 Texas $258 Kentucky $245 Alaska 243 $West Virginia 243 $Delaware 237 $Alabama 228 $Idaho 221 $Arkans 211 $Indiana 207 $Ohio 207 $Rhode Island 207 $South Dakota 207 $Pennsylvania 201 $Kansas 197 $South Carolina 196 $Virginia 195 $North Carolina 194 $Arizona 185 $Michigan 185 $Utah 175 $Maryland 171 $Georgia 169 $Oregon 168 $Iowa 160 $Montana 160 $Illinois 157 $Vermont 150 $New Hampshire 146 $Wiscons Mexico $140 Nevada $129 Hawaii $129 Minnesota $128 Washington $121 North Dakota $118 Wyoming $113 Nebraska $93

Oklahoma grandparents are A-OK.

Congratulations to grandparents in Sooner State, who said they spent $339 per grandchild on gifts, more than respondents from any other state nationwide. But the grandparents in Connecticut and Washington D.C. are hot on their heels, with reported spending of $336 and $300 per grandchild, respectively.

In last place were grandparents from Nebraska, who seem to take the Midwestern sense of frugality to a whole new level. They spent just $93 on Christmas gifts per grandchild, a whopping $20 less than the second-to-bottom Wyoming grandparents. Rounding out the bottom five were North Dakota ($118), Washington ($121), and Minnesota ($128).

Of course, the more grandparents spend on Christmas gifts for their grandchildren, the more they run the risk of overspending and going into debt. When we talked about “Midwest thrift” in the previous paragraph, we meant it in no small way. But on the contrary.

“It’s the key to budgeting, tracking and preparing when shopping to avoid overspending,” said Ken Mahoney, CEO of Mahoney Asset Management (@mahoneygps). “We often add an extra item to the basket or need to have the latest toy or fashion item, but those expenses add up quickly. It is necessary to create a Christmas list to stop impulse buying and additional unnecessary purchases.”

Mahoney had some additional advice for grandparents to help them stay on budget:

“Don’t hesitate to ask a sales representative about savings opportunities. For example, inquire—unadvertised coupons, upcoming special offers—about senior savings days or promotions and fallback programs. Whether it’s 10 percent or even 20 percent off, it could be the easiest $100 you save.”

Grandpas spend more than grandmas.

Our survey found that grandparents spend an average of $218 on Christmas gifts for their grandchildren. But we were a bit surprised to find out that grandpas actually spent more on Christmas gifts than grandmas: $244 to $202. We would have thought it would be the other way around!

We also asked our survey participants to classify themselves into three age groups: 35-44, 45-54, and 55+. Our results showed that grandparents spent less and less on gifts as they got older. Grandparents aged 35-44 spent $312, grandparents aged 45-54 spent $248, and grandparents aged 55+ spent $179.

Honestly, it was good to see elderly grandparents (who tend to live off a steady income) spending their money responsibly. And heck, for grandparents looking to spend more, there are ways to earn extra income!

Here’s a great recommendation from nationally recognized consumer and money-saving expert Andrea Woroch (@AndreaWoroch):

“One way to escape stressors and preserve some freedom is to spend time with fun-loving pets. Sites like Rover.com can connect you to well-paid dog walking and dog walking opportunities in your area. And many people need pet sitting around the holidays.

“Sitters can choose their own plans and have the flexibility to schedule their work based on their availability. Rover’s sitters/walkers can easily find a gig every day and make well over $1,000 a month. That kind of cash inflow goes a long way in budgeting for the holiday season.”

Don’t let that holiday mood lead to a highly interesting hangover.

While this wasn’t one of the questions we included in our survey, it’s a fair bet that many of the grandparents who answered put their Christmas shopping on a credit card. And while credit cards can be a great way to earn points, maintain your credit score, and avoid those “It’s two days until payday” blues, they can also be quite risky.

So here are some helpful tips from Brittney Mayer, credit strategist at CardRates.com (@CardRates), to help grandparents shop smarter and avoid making “clearing all that holiday debt” their default New Year’s resolution:

“Don’t max out your cards. Avoid carrying high balances. CardRates.com states that your usage ratio (which is what you owe over your Available Balance) accounts for a large part of your creditworthiness.

“If possible, use no more than one or two cards. Spreading out all your purchases can make juggling the monthly payment more difficult.

“Don’t sign up for multiple retail credit cards. They can be tempting at the checkout when the clerk offers a 10-20 percent discount on your entire purchase, but often these cards can carry high interest rates and opening multiple accounts can also affect your credit score.

“Use cards that offer rewards. Depending on the type of card used, you will receive cashback, points and miles. All of your holiday shopping can add up very quickly, so you might as well maximize your rewards. However, you must ensure that you withdraw your balance every month.

“Use your card’s activity alerts. You can set up notifications to let you know about purchases made using your account. This can help you stay on track and avoid fraudulent activity during busy shopping season and save you big bucks if you recover stolen information or, heaven forbid, personal funds.”

Most grandparents feel that their gifts are appreciated.

One of the other questions we asked was whether grandparents feel their gifts are appreciated and we were glad the vast majority of them do!

A whopping 80 percent of grandparents feel that their grandchildren appreciate the gifts, with just 11 percent feeling that their grandchildren appreciate the gifts a little, and four percent responding that their grandchildren do not appreciate the gifts at all appreciate.

Perhaps these latter grandparents are the ones planning to stop giving when their grandchildren reach a certain age. Seventy-six percent of respondents said they never intended to stop giving gifts to grandchildren, but those who did cited an average age of 20 as the intended endpoint.

According to our survey, clothes, toys and gift cards were the most popular gifts given to grandparents. But grandparents who plan on continuing to give gifts to older grandchildren should consider giving them money instead of gifts.

“For older grandkids, cash is king,” said Andrew Moore-Crispin, director of content at Ting Mobile (@tingftw), citing data from the Ting Holiday Shopping Survey. “51 percent of younger people ages 18-30 said they would rather receive cash or gift cards to help them pay for a monthly expense (e.g., student loan bill, cell phone bill, etc.).”

Finally, 15 percent of those surveyed said they had received a spending limit from their parents. But that’s the great thing about being a grandparent, isn’t it? Sure, they can give you a spending limit, but that doesn’t mean you have to stick to it…

If you enjoyed this article, check out these other posts and articles by OppLoans:

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A few months before the start of the Christmas season, many families start thinking about presents – planning them, asking their children what they would like, and floating around the idea of ​​lumps of coal appearing under the tree if the children misbehave. Statistically, it’s not uncommon for many parents to spend a few hundred dollars per child — if they can and want to swing it, of course. But how much do grandparents spend on Christmas presents? According to research, it’s probably more than you expected.

According to RetailMeNot surveys, the average US consumer spent $766 on gifts during the 2020 holiday season. Given the COVID-19 pandemic, it may come as a surprise that the average was not lower than last year. In fact, it was even higher as Americans spent $738 in 2019. Overall, U.S. consumers spent a record $789.4 billion on the holidays last year, reports the National Retail Federation, which was up 8.3% from 2019. Also this year, RetailMeNot forecasts will see the average Americans spend $885.76 on Christmas gifts, up 15% from last year.

As for spending on children, the average Christmas shopper with children under 18 plans to spend $276 per child on gifts in 2021, according to a CreditCards.com survey. With all of this in mind, where do grandparents fall on the spectrum?

Grandparents’ holiday expenses

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In November 2021, OppLoans researchers surveyed over 1,700 grandparents in all 50 states and the District of Columbia, asking how much they spend on Christmas gifts, whether they think those gifts are appreciated, and whether they ever planned on giving their grandchildren any Gifts to make more gifts. According to this survey, the average amount grandparents spend on Christmas gifts is $218 per child. However, grandfathers actually spend more on Christmas gifts ($244) than grandmothers ($202).

In addition, grandparents’ vacation spending varies depending on where a family lives. Here’s a look at the five states with the highest spending grandparents: Oklahoma, $339; Connecticut, $336; Washington, D.C., $330; Louisiana, $328; and California, $311. The five lowest-spending states were: Minnesota, $128; Washington, $121; North Dakota, $118; Wyoming, $113; and Nebraska, $93.

Other interesting insights from the OppLoans survey include:

Older grandparents tend to spend less on gifts. Grandparents 35-44 spent $312, grandparents 45-54 spent $248, and grandparents 55 and older spent $179.

80% of grandparents feel their grandchildren appreciate the gifts, 11% feel their grandchildren appreciate the gifts a little, and 4% feel their grandchildren don’t appreciate the gifts at all to know.

Clothing, toys, and gift cards are among the most popular gifts for grandparents.

Another data source that offers insight into grandparents’ gift-giving habits can be found in a 2019 study conducted by AARP. According to this study, grandparents spend an average of $2,562 annually on their grandchildren, with 86% of the country’s grandparents spending an average of $805 a year on gifts. While this data isn’t specific to Christmas gifts — it likely includes birthday gifts and gifts for other occasions — it does show that many grandparents across the country are investing chunks of money to give gifts to their grandchildren.

Ultimately, while these numbers may indicate larger trends across the US, there is no set amount for how much grandparents should spend on grandchildren at Christmas. And the holidays can be special for grandchildren, no matter the money spent.

Make Christmas special on a budget

Shutterstock

The holiday season can be both financially and emotionally stressful for many parents and grandparents. Most importantly, grandparents and parents aim to make the holidays special and memorable for the children in their lives, and that certainly doesn’t have to involve spending big bucks on gifts—or buying gifts at all.

“Holidays are about building memories, closeness and family identity – we want our children to look back on those special days with affection and a warm feeling: ‘This is how we do things in my family. It brings us together,'” Eileen Kennedy-Moore, Ph.D., a psychologist and author of Kid Confidence: Help Your Child Make Friends, Build Resilience, and Develop Real Self-Esteem, tells Romper. “Physical gifts can be delightful at the moment, but memories of them will likely fade.”

When the next Christmas is around the corner, children will probably not remember what they received as Christmas gifts last year, but rather how the holidays made them feel. Still, many grandparents may feel obligated to spend a certain amount of money to purchase gifts that will make their grandchildren happy.

“Holidays can be stressful for adults when expectations are too high or just don’t match current circumstances,” explains Kennedy-Moore. “In some cases, pressure can come from parents who feel they need to spend more than is comfortable or smart because they don’t want their children to feel deprived. There can also be disagreements between parents about how much to spend.”

Kennedy-Moore recommends thinking carefully about what matters most to you and directing your efforts toward it, which may include giving up activities that no longer align with your values ​​or just don’t seem worth the effort—even if they are traditions. Instead, consider creating new traditions that fit you and your grandchildren’s vision of a fun vacation.

“Focus on sharing fun activities,” says Kennedy-Moore. “If you don’t see your grandchildren often, talk to their parents to understand what they enjoy doing now. Children’s interests can change quickly! A game that can be played together might have more staying power than a toy.”

Activities like a celebratory movie night, a trip to a local museum or a sports game, making DIY ornaments, and cooking a pancake breakfast (or maybe even a pancake dinner) can result in incredibly fun memories to share with your grandchildren. Gifts are often seen as the seasonal norm, but experiences can sometimes be even more meaningful during the holidays.

Research definitely shows that many grandparents in the United States are happy to relax their grandchildren’s wallets for the holidays. But in reality, not everyone can or wants to do that — and that’s okay. What matters most this Christmas is that the grandparents make the holidays special, gifts or no gifts.

Expert:

Eileen Kennedy-Moore, Ph.D., psychologist and author of Kid Confidence: Help Your Child Make Friends, Build Resilience, and Develop Real Self-Esteem

People in the Bible, as part of our coverage of National Geographic, examines notable biblical figures in our ongoing series as part of our coverage of Bible history and the search for sacred texts

Many Christmas carols mention the three kings following a star and coming to worship baby Jesus in Bethlehem. In the Bible they are not called kings, and their number is not given – instead they are “wise men from the east.” In many eastern courts, including ancient Babylon and Persia, learned astrologers often served as priestly advisers skilled in the art of magic. In the centuries since, the Magi have been interpreted as kings.

According to the book of Matthew, a bright star led the wise men from the east until it stopped “over the place where the child was,” and “as they entered the house, they saw the child with Mary his mother” (Matthew 1 :24 ).

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The magi knelt for the baby Jesus and “brought him gifts of gold, frankincense, and myrrh.” Their gifts may allude to Isaiah’s vision of nations paying tribute to Jerusalem: “Multiple camels will cover you. They will bring gold and frankincense and declare the praise of the Lord” (Matthew 2:11, Isaiah 60:6). (Learn the difference between Arabian camels and Bactrian camels.)

King Herod had heard rumors of the birth of a new “king” and jealously looked for the baby. In the book of Matthew, the Magi stopped at Herod’s palace on their way to Bethlehem, and the king asked them to tell him where this newborn baby was so that “I too may go and worship him.” But the wise men were warned in a dream not to return to Herod, so they set out by another way to their own country” and were never heard from again (Matthew 2:12).

Building a backstory

Later narratives of the story identified the magicians by name and identified their countries of origin: Melchior was from Persia, Gaspar (also called “Caspar” or “Jaspar”) from India, and Balthazar from Arabia. Their gifts also had special symbolic meanings: gold signified Jesus’ status as “King of the Jews”; Incense represented the child’s divinity and identity as the Son of God; and myrrh touched Jesus’ mortality. (Learn what archeology tells us about the real Jesus.)

3:30

Popular depictions of Christmas seem to condense the nativity story into making it seem like the Magi appear in Bethlehem on Christmas, but the traditional celebrations don’t take place until 12 days after Christmas. Called Epiphany or Three Kings Day, it is the official commemoration of the arrival of the Three Kings and one of the oldest holidays in Christianity. Catholics celebrate Epiphany on January 6th and Orthodox Christian faiths celebrate on January 19th.

It’s true: there’s nothing more exciting than watching your kids react with joy to a Christmas tree strewn with more presents than you can count. But given that this reaction takes a full five minutes – until the wrapper is ripped apart – one can’t help but worry that the true meaning of Christmas is being lost. Enter the rule “Christmas with three gifts”.

What is the Three Presents Christmas Rule? It’s originally based on the manger story — and the idea that Jesus received three gifts from the wise men on December 25 — but modern moms are using it to save money, reduce holiday stress, and encourage their kids to be more considerate with their Christmas gift asks .

how do you pull it off A popular tactic is to have your kids narrow their gift lists down to just three categories: something they want (say, a new video game), something they need (like a puffer coat), and something to read (the Ramona series has called her). Surname). It’s about making Christmas a little bit more meaningful and taking the pressure off of buying endless gifts that often go unused.

So… would you do it? Each with their own holiday traditions. But if your kid’s gift list is a mile long and you’re feeling overwhelmed by the prospect of another trip to the mall, you *may* want to think about it.

RELATED: How to minimize the rush of Christmas presents this Christmas without feeling like a total Grinch

Credit: Anna Efetova/Moment/GettyImages

Christmas brings many to rejoice in the meaning of the holiday, to gather with family and exchange gifts. Christmas shopping has become a national pastime for many as lists are made, sales sought and crowds expected. When money is tight, the holidays evoke more stress than fun, and the fear of topping up an already overcharged credit card has some people dreading the season. You shouldn’t spend more than you can afford, but it can be helpful to understand the percentage of income that many people spend on Christmas gifts.

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percent of income

According to personal finance expert Gregory Karp, don’t spend more than 1.5 percent of your family’s annual gross income on gifts. If you have many deductions from your gross pay, you can spend a larger percentage of your net pay. If you’re planning a holiday or a trip home over the holidays, factor all your Christmas expenses into your budget, including the tree and decorations, wrapping paper and travel expenses.

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national average

A 2011 survey by Deloitte Development, a financial services company, shows that many people spend less than 1.5 percent of their income. The survey found that people with a combined income of $100,000 spend about $800 on gifts. This corresponds to less than 1 percent of wages. For those earning less than $100,000, Deloitte found that total spend was just under $300. Every situation is different. So if you have less income and more expenses in a year, you may not be in line with the national average.

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budgeting

No matter how much you spend on Christmas gifts, if you haven’t saved up for it, that extra expense can lead to financial hardship. If you estimate your vacation expenses based on your purchases in previous years, you can save the amount you need each month. After you calculate your Christmas budget and how much you need to save each month, put money from each paycheck in a separate account and avoid using it.

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Other options

To keep your Christmas expenses down, consider giving gifts that make sense but cost you little or nothing. If you are able to create attractive items for others to use or display, the recipient will appreciate the thought and effort. Alternatively, you can also issue a certificate for a free service you have provided. If you are a professional, offer your time and services in your industry. Re-gifting – giving a nice gift that you got from someone else but don’t want or need – can be a solution.

Some gifts you have made may be subject to inheritance tax after your death.

Gifts made less than 7 years before your death may be taxed depending on the following factors:

who you are giving the gift to and how they relate to you

the value of the gift

when the gift was given

Get professional advice from a lawyer or tax advisor on what you can give as a tax-free gift during your lifetime.

What counts as a gift

Gifts include:

money

Household and personal goods, such as furniture, jewelry or antiques

a house, land or building

Stocks and shares listed on the London Stock Exchange

unlisted stocks that you held less than 2 years before your death

A gift can also include any money you lose by selling something for less than its value. For example, if you sell your house to your child below market value, the difference in value is considered a gift.

What you leave in your will does not count as a gift, but belongs to your estate. Your estate is all of your money, property, and possessions that are left after you die. The value of your estate is used to determine whether inheritance tax is due.

Who doesn’t pay inheritance tax

Some gifts are exempt from inheritance tax.

There is no inheritance tax on gifts between spouses or registered civil partners. You can give them as much as you want during their lifetime, as long as they:

live permanently in the UK

are legally married to you or live in a civil partnership

There is also no inheritance tax on gifts you make to charities or political parties.

Use allowances to give tax-free gifts

Each tax year, you can also give away some money or possessions free of inheritance tax. How much is tax-free depends on which allowances you use.

Annual exemption

You can give gifts totaling £3,000 each tax year without adding them to the value of your estate. This is referred to as your “annual exemption”.

You can give gifts or money up to £3,000 to one person, or split the £3,000 between several people.

You can carry over an unused annual allowance to the next tax year – but only for one tax year.

The tax year runs from April 6th to April 5th of the following year.

Example In the 2019 to 2020 tax year, Mark gave his daughter Jane £2,000. If he died within 7 years of the donation this would use up £2,000 of his annual exemption. The following tax year, 2020–2021, Mark gave his other daughter Sarah £4,000. If Mark died within 7 years of the gift this would use his £3,000 annual allowance plus the £1,000 annual allowance left over from the previous tax year. Even if Mark dies within 7 years of these gifts, there is no inheritance tax to pay.

Small gift

You can give as many gifts of up to £250 per person as you like in any tax year, as long as you have not used another allowance for the same person.

Birthday or Christmas gifts that you make from your regular income are exempt from inheritance tax.

Gifts for weddings or civil unions

Each tax year, you can give a tax-free gift to someone who is getting married or civil partnership. You can give up:

£5,000 for a child

£2,500 to a grandchild or great-grandchild

£1,000 to each other person

If you are giving gifts to the same person, you can combine a Wedding Gift Allowance with any other allowance, except for the Small Gift Allowance.

For example, you can give your child a wedding present of £5,000 plus £3,000 using your annual exemption in the same tax year.

If you make regular payments

You can make regular payments to support someone else’s livelihood. There’s no limit to how much you can give tax-free, as long as:

You can afford the payments after you settle your usual living expenses

You pay from your regular monthly income

These are referred to as “normal expenses from income”. They include:

Pay rent for your child

Deposit into a savings account for a child under the age of 18

financial support for an elderly relative

If you are giving gifts to the same person, you can combine “ordinary income expenses” with all other allowances, except for the small gift allowance.

For example, you can give your child a regular payment of £60 a month (totalling £720 a year) while still using your annual allowance of £3,000 in the same tax year.

The 7 year rule

No tax is due on gifts you give if you live seven years after giving them – unless the gift is part of a trust. This is known as the 7 year rule.

If you die within 7 years of the gift and inheritance tax is payable on it, the amount of tax due after your death will depend on the date of the gift.

Gifts made in the 3 years before your death are taxed at 40%.

Gifts given 3 to 7 years before your death are taxed under a graduated tax scale known as taper relief.

Taper Relief only applies if the total value of gifts you gave in the 7 years before your death is over the £325,000 tax-free threshold.

Conical relief

Years Between Gift and Death Tax Rate on Gift 3 to 4 years 32% 4 to 5 years 24% 5 to 6 years 16% 6 to 7 years 8% 7 or more 0%

Make gifts that you will still benefit from

If you give something but still benefit from it (a “Conditional Gift”), this counts toward the value of your estate.

Gifts with reservation include:

Giving your house to a relative but still living there

to give away a caravan, but still use it free of charge for the holidays

Giving away a valuable painting but still displaying it in your home

Read more about when a conditional gift counts towards the value of the estate.

Keep records of gifts you give

The person who takes care of your estate needs to find out what donations you made in the 7 years before your death. You should keep the following records:

what you gave and who you gave it to

the value of the gift

when you gave it

How inheritance tax is paid on a gift

Any inheritance tax due on gifts will normally be paid by the estate unless you make a gift of more than £325,000 in the 7 years before your death. Once you’ve given away more than £325,000, anyone who receives a gift from you in those 7 years will have to pay inheritance tax on their gift.

Example Sally died on July 1, 2018. She was not married or in a civil partnership at the time of her death. She gave 3 gifts in the 9 years before her death: £50,000 to her brother 9 years before her death

£325,000 to her sister 4 years and 2 months before her death

£100,000 to her friend 3 years before her death There is no inheritance tax payable on the gift of £50,000 to her brother as it was given more than 7 years before her death. There is also no inheritance tax on the £325,000 she gave to her sister as that is within the inheritance tax threshold. But her friend will have to pay inheritance tax on her £100,000 gift at a rate of 32% as it is above the tax free threshold and was given 3 years before Sally’s death. The inheritance tax due is £32,000. Sally’s remaining estate was valued at £400,000, so the estate would pay inheritance tax at 40% on £400,000 (£160,000).

Read more about when a gift counts towards the value of the estate, how it is valued and how much inheritance tax may be due.

You can give your children gifts in lump sums, as every UK citizen has an annual tax-free gift allowance of £3,000. So you can give money to your children without having to worry about inheritance tax. It’s important to note that this is your total personal allowance, meaning you can’t give £3,000 to every child you have. You may need to split this amount between your children to use your allowance effectively. Note that this is an allowance per person, so both parents can each give £3,000 a year.

If you don’t use up all of your annual gift credit, you can carry it over to the following year, but only once. If you don’t use your allowance for the second year, the tax-free allowance will reset to £3,000 at the end of that period. This extension means you can give your children up to £6,000 in a year.

You can give small amounts of money up to £250 a year to as many people as you like. However, you cannot combine this with your annual tax-free gift allowance. This means you cannot give your child £3,000 plus an additional £250 as you will be taxed on anything over £3,000.

If you’re considering giving money to older children, you might be asking yourself, “If I give money to my kids, could that affect the income taxes they pay and put them in a higher tax bracket?” Don’t worry, HMRC does not count gifts as income, which means your children are not subject to income tax on financial gifts you give them.

If I die within seven years of a gift to a grandchild, I understand that this may be subject to inheritance tax. But how is HMRC aware of this gift? Do we need to keep detailed records?

James, reading

guy says:

You won’t be surprised to hear that I would always recommend that someone pay any taxes due. There are penalties for tax evasion and the consequences can be very serious.

Fortunately, there are many legitimate ways to reduce your inheritance tax (IHT) bill without being forced into risky shortcuts.

Do you have to pay IHT?

You have a personal allowance of £325,000 or £650,000 if you are or have been married. If your entire estate is of lesser value, no gift will be subject to tax.

In addition, HMRC is gradually introducing an additional allowance for your main residence, which means that by 2020 your total allowance will be £500,000 or £1m for a couple if you die. This can mean you don’t have to worry about taxes.

When your assets are worth more

Let’s start with the basic rules about giving. There are several exceptions for small gifts. If you intend to give your grandchild less than £250 or up to £2,500 as a wedding present or any amount from your income, this is not taxable.

Amounts above that are said to be potentially exempt, which means that if you should die, you would have to pay taxes up to seven years later.

The amount gradually decreases after three years from the date of donation until the seventh year, when no tax is due. Beyond simple gift giving as discussed above, there are several alternative ways you can pass on wealth to your grandchildren that may be more beneficial to you and them.

More tax minimization options

The rules are complex and I can’t give you a full breakdown here. But in general, you might consider buying any asset that qualifies for business ownership relief, or use trusts if you want some control over how and when the money is spent.

Each approach has pros and cons, and the right option depends on your circumstances.

If gifting is the right option for you, you should understand how this is tracked and monitored.

HMRC will not, per se, be aware that a gift has been made. However, the executor must complete a form for HMRC before the estate is granted, which outlines the value of the estate for inheritance tax purposes.

This form asks if any gifts have been made and requires the executor to sign a statement stating that he has accurately listed all assets, liabilities, trust interests and lifetime gifts.

HMRC will not grant any discount without this completed form.

HMRC carries out spot checks of these forms and this has increased in recent years. If a gift is discovered that has not been properly declared, additional inheritance tax will be due and possibly a penalty and interest on the unpaid tax.

It is the responsibility of the executor to submit an accurate form to HMRC. However, if the recipient of a gift is found to have misled the executor, the resulting minimum penalty is 50 percent of the unpaid tax due.

But it could be as much as 100 percent of any unpaid taxes due, and these are to be paid by the recipient of the gift.

Got a finance question for Guy? Email [email protected]

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