3 Tips For Being Financially Smart When Buying Presents For Your Children

Knowing the best way to raise your children can be a tricky business, especially around holidays. While you want your children to enjoy themselves and feel that these special days take on special meaning, you also don’t want to spoil them to the extent that they become entitled.

To ensure against this type of thing happening, you might want to come up with some plan for how you’ll deal with buying presents for your children. In many situations, the best way to do this is to think about it from a financial point of view.

To show you how this can be done, here are three tips for being financially smart when buying presents for your children. 

Keep Track Of The People You’ll Be Giving Gifts To

Throughout the year, not only will you be giving gifts to your children, but you’ll also likely be giving gifts to other people as well. So to ensure that none of these expenses take you by surprise, DaveRamsey.com recommends that you write down each person that you’ll likely be buying gifts for each year and figuring out how much you should be spending for each person and in total.

Occasionally, you might adjust this budget, like if you’re getting your children a large gift like a piano or a vehicle. But in general, you should try to keep your budget consistent between your children, which will also help them feel that things are fair. 

Create A Monthly Gift-Giving Savings Plan

Depending on how many kids you have, how many other people you plan on giving gifts to throughout the year, and how much money you have left over after all of your other expenses are paid out, it likely makes the most sense for you to split your costs by creating a monthly savings plan for your gift-giving.

To help you in doing this, Miriam Caldwell, a contributor to The Balance, suggests that you take the total amount you’re planning to spend on gifts, add about 15 percent to account for anything you’ve forgotten to include, and then divide that number by the 12 months of the year. After doing this, you’ll have the amount you should be saving each month to ensure you have the right funds available for gifts all year long. 

Consider An Experience Rather Than An Item

At a certain point, you might feel like your kids have enough toys or clothes that presents aren’t really necessary anymore. If you’re in this situation, Jonnelle Marte, a contributor to The Washington Post, suggests that you give an experience rather than an item.

In many instances, an experience can be less expensive than a physical gift while also helping your child create a lasting memory that they’ll cherish forever. 

If you’re concerned about gift-giving for your children, be it financially or emotionally, consider using the tips mentioned above to help things go smoother in the future.