No, You Don't Have to Give Holiday Gifts This Year. How to Skip It Without Shame

The cost of holiday gifts can add up quickly. In addition to friends and family, you may also feel pressure to purchase gifts for teachers, coworkers, the mail carrier and more. But you don’t have to get caught up in holiday overspending.

Nearly two thirds (72%) of US adults said they’re cutting back on holiday spending this season, according to a recent CNET survey. Nearly a third (30%) are doing that by cutting back on gifts, and 7% are skipping gifts altogether.

Some years, spending money on presents just isn’t possible, but that doesn’t mean you have to give up on celebrating. If giving gifts isnt in your budget this year, we’ve got some tips for making it work. And if you’re not sure if you should opt out, we’ve got tips to help you decide.

Should you skip holiday gifts this year?

Sometimes we force ourselves to do something that doesn’t work for our finances to meet other people’s expectations. But you don’t have to overspend just to please the people in your life. If money is tight, not giving gifts is a viable option.

“I think if you’re on the fence, then that’s a sign to experiment with not giving,” said Rita-Soledad Fernández Paulino, money coach and CNET expert review board member.

Here are some factors to consider to help you decide if skipping gifts is for you this year.

Cost

Buying presents for everyone you love has always been expensive, but with inflation, costs are higher than ever. There are plenty of ways to cut holiday gift costs, but they may not help much if you don’t have much saved up. If you don’t have enough cash to buy gifts, it may be a good idea to pass this year rather than go into debt.

Stress

Buying gifts can be stressful no matter what. The holidays should be a time of celebration and joy — don’t fill it with more stress if your budget is already tight. Consider other options if gift-giving is causing too much anxiety this year.

Waste

We often buy meaningless gifts just because we feel like we should. But buying cheap gifts because you have less to spend can mean the items won’t last long. This can lead to unnecessary waste. Consider whether you’re buying gifts just to get something or making thoughtful purchases for someone you love.

How to opt out of gift-giving this year

Part of the challenge of minimizing holiday spending is facing others’ expectations. Here are some ways to opt out of gift-giving guilt-free.

Navigating conversations about opting out

If you’ve decided to forego gifts this year, here’s how to handle potentially awkward discussions.

Setting appropriate expectations

Let your loved ones know that you won’t be giving any gifts this year. You don’t need to tell everyone you know — just the people you typically buy gifts for.

This is especially important for the kids in your life. If you usually buy presents for nieces, nephews, friends’ kids or little ones of your own, plan to have several conversations about your decision. You can explain that you still want to celebrate the holidays, just in different ways this year.

“Being honest and suggesting an alternative are great ways for your loved ones to be open to other options,” said Alaina Fingal, money coach and CNET expert review board member.

You may be surprised by the reactions you get. “Many times, I’ve realized that many of my loved ones may not want a gift,” Fingal said. “Sometimes, they don’t want the pressure of having to purchase a gift as well, or they’re decluttering and would rather not receive gifts.”

How to tactfully explain why you’re skipping

Some people may want to know more about your decision. You get to decide how much you share — or don’t share — about why you’re opting out.

You can say things like, “We decided we couldn’t buy the gifts we wanted for all our loved ones within our budget this year” or, “We’ve opted to pursue experiences instead of gifts this holiday season.” Don’t feel pressured to ask follow-up questions you don’t want to answer.

What if someone gives you a gift and you haven’t gotten them anything?

Everyone gets to decide for themselves what gifts they do and don’t give. There should be no obligation to buy someone a gift just because they gave you one. If you’ve explained to friends and family that you’re not buying gifts this year and someone still buys you something, thank them and allow yourself to enjoy it.

How to enjoy the holiday season without giving gifts

Skipping gift-giving this year doesn’t mean you have to miss out on celebrating the season altogether. Here are some other ways to make spirits bright.

Give gifts that don’t cost anything: You can still give gifts if you get creative. You could offer gifts of service, such as babysitting, dogsitting or helping with house projects. You could also try your hand at creating gifts with items you already have. Another option is to write a meaningful note to a loved one.
Create memories: Instead of getting caught up in what you can’t do this season, think about what you can do. Choose a few holiday experiences to focus on this year. You could host a potluck dinner with family or find nearby neighborhoods with holiday light displays and go for a walk in the evening to take it all in. “We have had holiday movie nights or karaoke nights, which has led to great memories that definitely outlast any gift,” Fingal said.
Practice gratitude: Comparing your holiday experience with others can make opting out of gifts more difficult. Instead, focus on things you’re grateful for this season. Not only will you enjoy the holidays more, you’ll also spread more joy. “I always tell people your presence is the best present,” Soledad said. “Choosing to show up and be present with your loved ones, playing games and eating yummy food together… That is such a blessing, and focusing on that is a beautiful way to honor each other during the holiday season.”

Still want to give gifts? Here’s how to spend less

There have been years when my husband and I decided to spend less on gifts, and we’ve tried several creative budgeting and gift-giving tactics to help us do it. For example, the first Christmas we were married, we had just spent a lot of money on our wedding, so we opted to make each other gifts. It was more challenging than just buying things for each other, but it proved to be more meaningful and fun for both of us.

If you still want to give gifts but you have a smaller budget this year, consider these options to help minimize your costs.

Buy less expensive gifts: Let’s say you typically spend $50 a person, and you buy gifts for five people. If you decide to cut back to $20 per person this year, you could save $150.
Buy the same small gift for everyone: If finding an affordable gift for everyone seems overwhelming, simplify things by giving everyone the same gift. You could find one thing you love within your price range — such as a favorite candle, book or box of chocolates — and give it to everyone on your list.
Buy for fewer people: I have six siblings, and many of them have gotten married and had kids, so my gift recipient list has rapidly grown. A few years ago, we decided to do a gift exchange for grownups and a gift exchange for kids. Now, each adult buys for one other adult, and each kid buys for one other kid. You could also decide to only buy gifts for kids or have a white elephant exchange.
Make your gifts: Making your gifts can be a great way to keep it personal but stay under budget. But calculate supply costs ahead of time to make sure getting crafty will actually save you money. I’ve gifted knitted projects to friends and family in the past, and the cost of the yarn plus the time it took to make meant the gift cost much more than it would have if I’d just bought something.
Shop sales: Make a list of gift ideas and keep an eye out for sales like Black Friday and Cyber Monday to score items at a discount.

The holidays are about more than just stuff

Whether you’re cutting back on spending or giving up gift-giving completely this year, it’s still possible to enjoy the holidays. Use this season to celebrate friends, family and gratitude — and avoid the unnecessary stress of stretching your finances thin.