Where to Scrimp, Splurge On Holiday Gifts
Your ultimate guide to surviving the 2008 holiday season.
Dec. 13, 2008— -- Trying to save a little money this holiday season? It seems logical to scratch off a couple names toward the bottom of the gift-shopping list--like the doorman, the nanny or the teacher.
But skipping out on gifts for those who go out of their way for you much of the year is not the right way to save money, experts say. Instead, be realistic about what you can spend and on whom.
"It's still important to splurge on people who fit you into last-minute appointments or take care of your children--like an assistant, baby sitter, hairdresser or dog walker," says Stephanie Robinett, public relations coordinator at Amazon.com.
She recommends purchasing a case of wine--many retailers offer a by-the-case discount--and giving a bottle to each recipient, such as coworkers and assistants. Personalize each bottle by pairing it with an accessory like an opener or set of stoppers.
"Anything you give will be appreciated," says Gillian Joseph, director of merchandising at Gifts.com.
How To Save
If everyone should still receive gifts, how does one save? The key is avoiding buying too many gifts for loved ones, says Rhonda Grote, founder of Thinkthoughtful.com, a gift Web site.
Instead limit gift-giving for close family to one or two special, thoughtful presents. Grote also recommends cutting back on the amount of money spent on holiday cards and wrapping paper, which can quickly add up. "The money you save you can then use for these other people on your list, like your manicurist or hairdresser," she says.
When it comes to extended family and friends (and their children), Joseph says you should have a frank discussion with them early on about how much you will spend and who will be trading gifts.
According to a survey by Consumer Reports, 59 percent of respondents said they plan to cut back on gift giving. Of those who plan to spend less, 40 percent said they are scaling back on friends and friends' families. So instead of buying gifts for each of your friends' children, Joseph recommends getting a family gift like an accessory for the Nintendo Wii or a board game that everyone can enjoy together.
Appropriate Gifts
The Consumer Reports survey also found that 30 percent of respondents planned to spend less on service providers such as delivery people, hairdressers and gym instructors, and 29 percent aren't giving as much to coworkers. But that doesn't mean those who hope to spend less this year should revert to the classic fruitcake option or giving other baked goods.
Instead, look for items that make the recipient's life easier, Grote says. "It doesn't need to be expensive, but good quality and have a purpose," she says. A fruit basket doesn't show quite the appropriate level of appreciation. Instead, Grote recommends a chic umbrella or goody bag filled with items to help keep one's car clean or organized.
While gift cards tend to be an easy option, especially for people you do not know well, they're not necessarily the right gift when you need to save. For example, if you normally get your dog walker a $50 gift card to Starbucks and this year can only give $25, it will be much more noticeable than if you purchase a cashmere scarf on sale for the same price.
Also steer clear of gifts that cater more to the recipient's profession rather than his or her interests. Your nanny would probably prefer a chic handbag or clutch she can use on a night out, rather than an appliance or gadget for the kitchen.
"Remember, these people are humans first and their profession second," Grote says. "Avoid gifts that help them do their job better and look to items they can enjoy in their downtime."
Drawing the Line
The final, and perhaps most important key to saving on holiday shopping, is to know who you truly need to buy gifts for and who you don't.
While it makes sense to give back to those who make your everyday life better or easier, don't feel obligated to purchase a gift for everyone you come across. If you do not normally buy a present for a certain delivery person (or if the delivery person isn't the same from day to day), this is not the year to start, Joseph says.
"These people realize everyone is cutting back," she says, "and won't take offense."