2023 Gift Giving: Trends and Preparation Tips

Give gifts that bring joy to all.

The holidays are approaching fast and that means it’s time to start thinking about shopping for gifts. If the thought of coming up with Christmas gift ideas causes anxiety, you’re not alone - more than 64% of Americans struggle to find the right holiday gift for their loved ones.¹

While finding the perfect gift may be tough, planning ahead may ease some of the stress. Let’s explore the top gifting trends for 2023 to make holiday shopping a smooth experience for both you and your finances. Plus we’ll cover some strategies that may help reduce the burden on your wallet this year.

Key Takeaways

• Gifts don’t have to be physical items; gifting experiences helps your loved ones create memories they’ll cherish for years.

• Stashing savings away in a dedicated account for the holidays may put less of a strain on your finances.

• Holiday deals like Black Friday and Cyber Monday sales may help you lock in lower prices on the hottest gifts of the season.

2023 Trending Gift Categories

Stuck on what to get for your family and friends? Draw inspiration from others by checking out a few of the current gifting trends.

Practical Gifts

Practical gifts are rarely at the top of peoples’ holiday lists, but that doesn’t mean they won’t love receiving them.

For example, if your best friend consistently loses their keys, buying them an Apple Air Tag or other GPS tracker could save them a future headache. If your spouse loves to cook but doesn’t have great kitchen knives, consider investing in a quality set. The point is to fill a need that your loved one may not even have identified for themselves.

To level up your game, consider buying eco-friendly gifts. Look for items made with sustainable, earth-friendly materials or choose a gift made by a company that gives back to the environment through charitable actions.

Personalized and Meaningful Gifts

Personalized gifts like monogrammed towels, cute mugs, and other fun items are a great way to show you care. It’s a way to tailor gifts to each person on your list or jazz up more practical gifts.

For example, if you and your spouse went on an amazing vacation together, have your favorite photo printed on canvas so you could reminisce every time you look at it (and maybe start stashing some money away in a travel fund for a return visit).²

Experiences

Gifting experiences help your loved ones build memories that last a lifetime. Whether it’s a vacation for the whole family, tickets to a concert they’ve wanted to see, or maybe a series of cooking classes that you could do together.³

If you have someone that's particularly tough to buy for, consider subscribing them to a gift box series that fits their interests. Maybe they love trying new camping gadgets or enjoy expanding their tastes with new wines each month.

Holiday Preparation and Gifting Tips

Choosing the right gift may seem like the most important part of your holiday gifting, but it’s equally important to keep your long term financial wellness in mind as you shop. There are things you could do to prepare for the holidays so you’re able to buy great gifts without breaking the bank.

Create a Holiday Gift Budget

Before you head to the stores, set a firm budget. Think about all the people you want to buy for and consider how you may be able to scale back. For example, if you have a large family or friend group, suggesting a gift exchange or Secret Santa party may be a way to reduce the number of presents you have to buy.

As part of your planning, consider setting spending limits to help you find your maximum budget and stay on track as you make purchases.⁴

Save Early and Often

It’s never too early to start saving for your holiday shopping budget! Consider creating a specific savings category or even a dedicated savings account for these funds so you won’t feel tempted to use them to cover other expenses.

If you keep the money in a high-yield savings account, you’re putting your money to work by earning compound interest at a higher rate than average (potentially 10x the average⁵), meaning you may have more money on hand when the holiday season rolls around.

Watch for Deals and Discounts

Since the holidays usher in one of the biggest shopping events of the season, many retailers offer discounts and deals. You may be able to save money by buying most of your gifts during Black Friday or Cyber Monday sales events, and many stores offer additional deals throughout December.

You may even choose to treat yourself during these days. For example, if you’ve been in the market for a big ticket item be sure to watch for those during these events. You might be able to upgrade your tv after all…

Use Credit Strategically

Before you reach for your credit card, take a moment to consider how you’re using it. Being responsible with credit means avoiding spending more than you’re able to repay in a timely manner.

If you need to charge purchases and know that you can’t afford to pay them off before interest accrues, you may want to look for a card with a low introductory rate or consider using a personal loan to finance purchases.

When making purchases, consider using a rewards credit card that earns points when you spend. You may be able to use those points to pay for flights, hotels, or other travel expenses, or even to pay down your credit card bill when it comes.⁶

Watch for Online Scams

Shopping online is convenient, but it’s not always safe. You should always be on the lookout for scammers, and even more so during the holidays. This time of year, it’s not uncommon for scammers to set up sham websites advertising lower prices on popular gift items.

Unfortunately, scammers often take your payment information and charge your card, but never ship the product to you or they send you a knock off version. In the worst case scenario, they may use your payment details to make fraudulent charges.

To protect yourself, try to purchase products from known retailers and websites. If you decide to purchase from an unfamiliar site, do your research. Make sure the site is legit before entering your payment information and check your card’s fraud policy in case you need to dispute a charge.⁷

Final Thoughts

Holiday gifting, whether you’re buying for yourself, your family, or your friends may be expensive. Take some time to prepare by creating a budget, setting money aside and looking for deals.

With these tips in mind, you may be on your way to a financially responsible and enjoyable holiday season with your loved ones. Happy Holidays!