How to Avoid Holiday Overspending and Still Give Meaningful Gifts

Between persistent inflation and economic uncertainty, you’re far from alone if you’re feeling a holiday budget crunch. According to PwC’s 2025 Holiday Outlook report, consumers overall expect their seasonal spending to decline an average of 5 percent from 2024. But that number masks an interesting generational divide: While members of Gen Z say they are planning to scale back their holiday budgets by a striking 23 percent but everyone else—millennials, Gen X and baby boomers—all say they expect to maintain or even increase their holiday spending.

No matter what financial reality you’re navigating this year, the following tips can help you address almost everyone on your list with thoughtful, intentional gifting strategies.

Meaningful gifting strategies for kids, family and friends

Little kids

It’s a common parental lament: Your toddler gleefully abandons the carefully chosen toy for the cardboard box it came in. The underlying lesson is that little ones are pretty happy with the most basic of items and mountains of presents are liable to overwhelm them—not to mention lead to excess clutter. So keep this in mind that when shopping for the tiniest people on your list: Less is truly more.

Festive Fix: “The Four Gift Rule”

One of the most popular holiday gifting trends started several years ago by parents aiming to limit the number of gifts their children received—and maybe even teach them about gratitude and sustainability at the same time. Thoughtful, practical and simple, the “Four Gift Rule” directs you to buy:

One of the best parts of this model is that it is infinitely adaptable to individual interests and budgets. And you can create your own variations. You may want to swap out “something to wear” for “somewhere to go” (like a trip to the zoo or an upcoming concert) or “something to read” for “something to learn” (like a science kit or a puzzle). Plus, by starting this construct when kids are young, you can set the stage for a lifetime of holidays marked by more intentional gift giving.

Older kids

Kids quickly grow up to become savvy consumers with many constantly checking out social media and their peers for trending items. Meanwhile, many families are actively trying to reduce the accumulation of “stuff.” If you’re in this camp, you may believe your children already have plenty and want to prioritize one or two meaningful gifts instead. The key to making this shift is to request wish lists well before the holiday rush, allowing you to budget for that coveted item or gently reframe expectations if needed. Then, alongside those carefully chosen gifts, you can shift your focus to quality time together.

Festive Fix: Experiences

This strategy has a double benefit: Recipients get to savor the thrill of anticipation, and you can spread out the financial impact rather than taking one big holiday hit. Make the moment count by packaging future adventures to spark instant holiday morning excitement. Here are some ideas:

Family members

Here's a secret nobody wants to say out loud: Your siblings, cousins and extended family are likely feeling the exact same holiday pressure you are. Everyone’s stretched thin, and the thought of buying yet another present for someone who has everything feels exhausting. Take a chance and initiate a conversation about scaling back or restructuring gift-giving this holiday season. You just might help lift a collective weight off everyone’s shoulders.

Festive Fix: Secret Santa Exchange

Start a new tradition by instituting a Secret Santa system where everyone buys for just one family member instead of each person or family individually. Set an agreed-upon price limit, then elevate the experience by adding themed categories that make gift selection easier and more fun. You can draw names to buy for one specific person or keep it more open-ended, especially if you’re gathering as a group and can turn the exchange into a game where attendees unwrap a random gift, with the opportunity for future players to “steal.”

Here are some categories applicable to either approach:

• Guilty pleasures: Choose items most of us never buy ourselves, but would love to receive, such as gourmet food, a luxury accessory or other splurge item.
• Gift cards: They get a bad rap for being a lazy or thoughtless gift but with so many available options you can tailor it to the recipient’s favorite restaurant or go-to big box store or even a boutique. Plus, they’re particularly convenient if you’re doing a long-distance exchange.
• White elephant with a twist: Set a theme like “something that sparks joy,” “creative re-gift” or “useful items under $25.” If you’re not gathered together physically, extend the fun by setting up a video call and watching each person unwrap their gift.

Friends

For those who are juggling multiple family gifting obligations, it’s perfectly reasonable to be more selective about your friend gift list. It doesn’t mean your friendships matter less, just that you’re being honest about your capacity. But for many, friends often function as chosen family and are essential to keeping the holiday spirit alive. With a little creativity, you can not only stretch your dollar but also lean in to sustainability.

Festive Fix: Thrifting Treasures

According to ThredUp’s 2025 Resale Report, 58 percent of U.S. consumers bought pre-owned items last year; among millennials and Gen Zers, the number was even higher at 68 percent. In fact, its holiday report finds that 40 percent of budgets will go to pre-owned purchases. This approach is an added bonus for anyone of your list you know will be particularly likely to appreciate thrifted items for their originality and lower environmental footprint.

Another bonus is that the thrill of the chase is fun for both the shopper and recipient. These days, there are multiple platforms to check out, including ThredUP, Poshmark, the RealReal, eBay, Etsy and Facebook Marketplace, just to name a few. Have some fun leaning into nostalgia by finding personal items that will take the recipient back, from a piece that’s reminiscent of their go-to high school outfit (which might be back in fashion!) to a memento from a beloved hangout.