As most students can relate, having extra cash to throw around for Christmas gifts is often just a pipe dream. It’s hard enough getting by on a part time job or work study income as it is, but when you toss needing to get Christmas gifts for friends and family into the mix, it can become almost as stressful as having to study for finals!
According to the recent Discover Annual Holiday Survey, spending on holiday gifts is predicted to rise this year. Interestingly, the way that millennials, many of whom are college students, choose to shop for holiday gifts is markedly different than their older counterparts. Specifically, more than half of millennials reported that they would do all of their shopping online, compared with only 42% of older shoppers. Additionally, nearly 3 out of 4 millennials said they would use their smartphones or tablets to do their holiday shopping, while only 1 out of 3 non-millennials reported doing the same.
With all this extra spending predicted and the ease in which millennials (and others) have in purchasing their gifts online or using their smart devices, it’s important to remember to stick to a budget that you can afford. You can still get presents for your loved ones even on a student’s meager budget, without hurting your credit or losing your mind!
Here are just a few tips:
- Create a holiday shopping budget:
It’s important to have a budget in place for all of your expenses in general, even if the holidays weren’t just around the corner. Take your income in consideration, as well as bills or other financial obligations you have on a regular basis. Then, determine how much is left over for you to possibly use for gifts for others during the holiday season. Just remember, ideally you’ll want to pay your bill in full at the end of the cycle, so make sure you budget accordingly!
That being said, try to consolidate a little bit if you can: if you have a sibling with a spouse, consider just getting one gift for the couple instead of an individual gift for each. Similarly, don’t bother getting gifts for your pets if you have any! Discover’s Annual Holiday Survey found that 37% of respondents planned on spending at least $50 on their dog, while 27% said they’d spend that much on their cat. Dogs and cats have no idea that it’s the holiday season, nor do they even understand the concept of gift giving, so save your money and leave them off of your list this year!
- Use a credit card where you get cash back for your purchases:
This one is a no-brainer! If you’re going to be spending money, why not use a credit card that gives you cash back for all of your purchases? You can then use that extra money to help pay your bill. The Discover it chrome for Students card gives you 1% cash back on all your purchases, as well as 2% cash back on gas and at restaurants. Additionally, you can use this cash back to pay for items on Amazon, which is a great place to buy all of your holiday gifts at once!
- Do-it-yourself!:
Often, the best gifts are made by hand and cost very little compared to what it would be to buy someone a brand new commercially-made present. Making the gift yourself also gives a sentimental and personal touch, which a lot of people appreciate.
The most important thing when it comes to your holiday shopping is to make a budget, stick to it and always pay your bills on time (and in full if possible). By following these tips you’ll be well on your way to a stress-free (or at least less stressful!) holiday season.
Disclosure: I am a paid brand Blogger for Discover Financial Services My views are my own and do not necessarily reflect the views of Discover Financial Services and its affiliates.
