The holidays can easily get out of control with gift-giving. We are wired to spend more during the holidays. At some point, this level of spending becomes expected and the meaning of each gift is lost. According to the National Retail Foundation, Americans spend just under $1,000 on Christmas gifts each year. For many, that’s a week’s salary or more. If you’re looking for a new budget-friendly solution to gift giving this season, there is a hack you need to hear about: the 4 gift rule. Here’s a breakdown of each gift and how it can save your budget this year.
1. Something They Want
The first gift in the “4 gift rule” is something they want. This is usually the biggest present any person will receive. It will be at the top of your child’s Christmas list or it will be the one thing that someone really asked for that year. Choosing one thing the person wants makes sure that there isn’t an excess of toys. This is especially helpful if you have multiple children. Parents know how quickly Christmas lists can get out of hand and then pile up in your home. It’s reasonable to expect to spend the bulk of your gift-buying budget on this gift.
2. Something They Need
The second gift focuses on something that they need. These could be things to support their hobby like art supplies, sports equipment, headphones, or a new desk. It doesn’t have to be boring just because it’s more of a necessity for your receiver. Ask each person on your list what they need. For younger children, you may need to decide what this gift should be. To save money on something they need, you can see if it is available on discount sites like Woot or install a browser extension like Honey.
3. Something to Wear
Next, give your child something to wear. This could include a new coat, shoes, or even a gift card to their favorite clothing store. You can include things like a bike helmet in this category as well. The idea is to gift something that they will wear on a regular basis. Keep an eye out for sales once you know what you’re getting. Many deals this year are even better than Black Friday as we draw closer to Christmas Day.
Some families take this category out and replace it with an experience or somewhere to go. This helps you and your family focus more on creating memories and less on material things. It could be tickets to an amusement park or a play, a camping trip, or a day at the aquarium. Check out Groupon for discounts on experiences your family will love.
4. Something to Read
Putting a focus on reading during the holidays is important, especially for younger children. Getting them excited about books will set the foundation for a lifelong love of reading. You can choose one book for this gift or a series depending on your budget. Another great way to save money on this gift is to visit used bookstores. Some bookstores are dedicated to used titles, while others have a section for secondhand. You also can visit sites online like thriftbooks.com.
Can The 4 Gift Rule Apply to Adults too?
Can the 4 gift rule apply to adults as well? Absolutely! When we shop for family members, it often feels like an obligation. By applying the 4 gift rule, we can hone in on more meaningful gifts. Plus, you’ll probably cut down on shopping time and a lot of wrapping! These 4 gifts might be smaller for family members than what you give to your children. The key is to set a budget for each family member and stick to it.
Of course, you can also tailor the 4 gift rule to meet your family’s needs. Maybe you focus on 3 gifts or change the categories. Have a discussion with your children and other members of your family to decide what works best for everyone (and your wallet).
Why It Works
The 4 gift rule promotes thoughtful gift-giving and takes some of the stress out of holiday shopping. It will teach your family gratitude and combat the consumerism that often plagues the holidays. This rule also opens up a dialogue between you and your children where you can teach them valuable lessons about consumption, sustainability, and prioritization. It may take a few holidays for your family to get used to this style of gift-giving, but in time it will become a tradition.
How do you handle gift-giving during the holidays? We’d love to hear about your money-saving hacks.
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Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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