Think about all of the people on your holiday gift list. Now, think about how much all those gifts are going to cost you. Are you starting to sweat a little bit?<\/p>\n
If gift shopping feels like a bigger financial burden this year, you\u2019re not alone.<\/p>\n
A recent NerdWallet survey<\/a> finds that holiday shoppers plan to spend $182 more than last year on presents, on average.<\/p>\n Chalk it up to \u201cgiftflation.\u201d<\/p>\n What is giftflation?<\/p>\n \u201cGiftflation\u201d refers to the rising cost of gift giving, fueled by inflation<\/a> and the growing pressure to give.<\/p>\n Why gift givers are feeling extra strain<\/p>\n Shoppers are getting a strong dose of sticker shock this year.<\/p>\n Sweeping tariffs<\/a> have hit popular gift categories, such as apparel, household goods and appliances. It\u2019s no surprise that many holiday shoppers (74%) expect tariffs to impact their holiday shopping, according to the NerdWallet survey.<\/p>\n It\u2019s not just gifts that are getting more expensive. Inflation is also driving up the price of food, energy, transportation and other essentials, according to data from the Bureau of Labor Statistics.<\/p>\n \u201cWhen everyday costs rise, that leaves less room for discretionary spending when it comes to gift giving,\u201d says Hillary Stalker, a certified financial planner in Franklin, Tennessee.<\/p>\n Surging costs come at a time when many households are coping with income disruptions from layoffs and the government shutdown. Shoppers may lean more heavily on payment methods like credit cards and buy now, pay later<\/a> plans, which could lead to overspending.<\/p>\n Taylor Nelsen \u2014 an accredited financial counselor in Greenville, North Carolina \u2014 says the high earners<\/a> she works with are feeling the squeeze, too.<\/p>\n \u201cThey’re making money, but they are just pressed in a lot of other areas right now,\u201d she says.<\/p>\n Many high earners have bought their first homes in the last few years, she says, and are concerned with managing other expenses alongside steep housing costs<\/a>.<\/p>\n Social pressures are mounting, too.<\/p>\n A lot of high earners are entering a stage of life where they feel expected to give gifts to more people, like their kids\u2019 teachers, Nelsen says. And when it comes to showing gratitude to the people in our lives, we often set the bar too high.<\/p>\n We may feel guilty if we receive an expensive gift and don\u2019t reciprocate \u2014 says Lynn McHann, an accredited financial counselor in Bozeman, Montana.<\/p>\n It\u2019s hard to shake the feeling that we\u2019re falling short.<\/p>\n Stalker says the rise of social media and influencer culture has intensified the pressure to buy more expensive and extravagant gifts.<\/p>\n What used to be \u201ckeeping up with the Joneses\u201d now feels more like “keeping up with the Kardashians,\u201d she says.<\/p>\n How to fight giftflation<\/p>\n You can keep the holiday magic alive without going overboard on gifts. These strategies might help:<\/p>\n Take a good, hard look at your cash flow<\/p>\n If you don\u2019t already have a holiday budget<\/a>, make one now. Check on how much money you have coming in and going out. Then, choose a spending limit that works for you.<\/p>\n If you\u2019re feeling strapped this year, start thinking about a savings plan for next year. Put a little bit of money away for holiday spending each month throughout the year so that it’s not such a crush to your budget during a one or two-month period, McHann says.<\/p>\n Reset expectations<\/p>\n Take a step back and evaluate the relationships you have with the people you feel obligated to give gifts, Nelsen says.<\/p>\n \u201cDo they even want a gift?\u201d she says.<\/p>\n Talk to your adult family members about what they value. You could do something more meaningful than a wrapped present, like swapping childcare, Nelsen suggests.<\/p>\n Don\u2019t hesitate to set boundaries. Let loved ones know if you need to scale back or sit out the gift exchange.<\/p>\n Be honest about the financial or emotional challenges you may be facing right now. Friends and family may assume you\u2019re doing just fine financially. They might not know about the busted water heater you just replaced, or that your homeowners insurance premium is about to go up.<\/p>\n These discussions can be difficult, but they\u2019re necessary to protect yourself. Stalker recommends having these conversations with your kids, too, to help set the tone.<\/p>\n Stick with a simple explanation, like, \u201cThis year things are going to be a little tighter than they’ve been in the past,\u201d or, \u201cPlease give me your list. Just know that Santa can’t bring all of these things,\u201d she says.<\/p>\n Pause before you buy<\/p>\n