CREDIT: FSU PUBLICATIONS AND COMMUNICATIONS DEPARTMENT

It’s no mystery buying gifts during the holiday season can cause financial stress for some people, especially if the gift prices go out of budget. According to Bankrate, holiday shopping has become less attractive for some as the cost of goods and services escalates.

“When you are the head of a family of three, buying gifts, keeping savings and controlling my peace of mind is quite demanding and chaotic,” said Fanshawe student Manola Aguilar. “The thin line between buying good gifts and keeping it inside my budget gets blurred most times.”

A poll from the Angus Reid Institute found that more than half of Canadians feel more emotional and financial pressure during the holiday season.


Financial advisor and professor Kenneth Judge said Christmas could induce anxiety because gifting can sometimes feel necessary.

“Missing or omitting a person can often be considered an insult. Plus, the perceived cost of gifting is sometimes outside someone’s means,” Judge said.

He stated that if someone’s budget requires cutting back on holiday spending or having a less gift-focused Christmas, the best thing to do is to communicate, design and create a list.

“When you plan and save for something, it is always easier to manage. Plus, you can also withstand any unforeseen cost increases,” Judge said.

Every year, holiday marketing campaigns start as soon as Halloween ends. Without warning, there are holiday ads everywhere, with countless businesses rushing to cash in on a spending frenzy. Every person gets bombarded with holiday emails, offers, social media posts and TV ads.

“Holiday season is the perfect time for brands and businesses to engage their audience through gifts,” Judge said. “Buying habits increase significantly during holidays, and as a consequence, the demand for certain items increases, which alters the prices. The best way to manage financial stress, not only holiday times, is to do two things: manage the cost and save for it.”

Judge said that, in the end, that is what the companies want with their relentless marketing campaigns of “buy, buy, buy!”

“There has not been a Christmas in which I have not gotten out of my budget buying gifts not just for my family but for close friends too,” Aguilar said.

Judge stated that with the increase in expected sales comes an increase in production. He said that usually happens months in advance, which will always produce a spike in a country’s Gross Domestic Product (GDP). He added that factors like inflation play a huge role when buying gifts each holiday.

“In January 2022, the inflation rate reached 5.1 per cent, the highest since 1991. Inflation happens when the economy’s demand for goods and services exceeds the economy’s capacity to meet that demand at the current price level,” Judge said.

Aguilar said that beyond the financial stress the season represents, she has to deal with morally complex decisions. She added, “It does not feel right,” to stop gifting someone close who always gives to her and her family.

“This can be tricky because not buying a gift for someone you have always previously bought one for may not react positively, but that is a worst-case scenario,” Judge said. “Many times, discussing with these people the idea of a no-gift Christmas can be replaced with an in-person visit, which in my opinion is sometimes better than a physical gift.”

Judge said that sometimes this cannot be an option because there are many miles between people, and a visit may not be possible or feasible.

“Sometimes the little details and gestures like a card are the ones that count more than an expensive gift,” Judge said.

He added that anything could work out if the people involved have transparent and open communication beforehand.

“When the time to celebrate with the family comes, I feel like I am financially drained and sometimes even regret the expensive gifts I bought,” Aguilar said.

Judge said that the holiday is not about guilt or financial stress but about enjoying with loved ones and close ones. He added that when someone feels guilt or anxiety, it restrains them from sharing and enjoying the moment.

“If people think about it, Christmas celebrates kindness and gratitude. Sometimes the best gift someone can give is not a physical gift that costs money but rather a gift of time and presence,” Judge said.

He added that making a budget, taking care of basic needs and allowing peace of mind can be the most significant gifts someone can give themselves during the holidays.

“It is not only about what you can give to people, it is also what you can give yourself,” Judge said.