How to Tell Your Family You’re Spending Less on Christmas This Year 

The holidays are a time full of family, love, and expenses. That last part cannot be overstated. Traditions remain important, and spending time with loved ones is at the center of what most people love about this time of year, but every year families seem to struggle more to make the season work for their budgets. And for many, that means cutting back.

From introducing ‘no-spending Christmases’ to my family’s ‘only kids get presents’ rule, there are many ways families are cutting back. The National Retail Federation reports that 32% of families are cutting back on non-holiday spending to make way for the holidays. In comparison, 22% of people say they will buy fewer items for themselves so they can shop for loved ones.

The measures are, of course, more pronounced in lower-income families. 80% of families making less than $75,000 are planning to cut back in some way. But even households making more than $150,000 plan to cut costs, with 60% reportedly looking for ways to save.

And with holiday prices expected to rise roughly 3.4% due to inflation, families will get less for their money. A report by Visa Business and Economic Insights shows consumers plan to spend an average of $777 on holiday gifts this year. That’s up a little from last year, but the way people are spending that money has dramatically changed, with the same report finding consumers are getting more selective.

It all points in the same direction: Christmas is still, in many ways, about gift-giving. But families are increasingly prioritizing their budget and spending time together over expensive presents to show love. And honestly, when it comes to your loved ones, that should make it easier to say, “Hey, this year, let’s do something that will create memories instead of trying to one-up each other with gifts we cannot afford.”