The Financial Case Against Gifting Experiences This Christmas

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Admission prices for events and concerts are soaring. Check out a few winning gift ideas that won’t break the bank. 

I’m all for experiences — I really am. Several years ago, I took my kids on a three-month road trip, and we filled out a couple of photo albums of us hiking, swimming, riding horses, seeing a rocket launch, and riding a mountain roller coaster.

In an effort to shun consumerism and spend more time with the people we care about, many Americans have been gifting experiences to each other for Christmas. Mostly, this is a good thing, but there’s a big problem with experiences these days: They’re expensive.

Admission prices for movies, theaters, and concerts rose 10.9% over the past year, and sporting event prices spiked 25.1%, according to the Bureau of Labor Statistics. And even less-expensive experiences — including going out to eat — are more expensive, too. The “food away from home” cost increased 5.4% over the past year.

I’ve been cutting back on experiences for a while because they haven’t felt worth the cost. If you’re in the same boat, you can still find thoughtful gifts that won’t derail your personal finances this Christmas.

A few simple gift ideas that won’t break the bank

I’m not going to score originality points here, but if you’re looking for a way to avoid higher prices for experiences, here are a few suggestions, each of which might cost you $25 or less.

1. Gift cards

Whether you love them or hate them, gift cards are a great way to stay within your Christmas budget because the price is set. You don’t have to wait to see if they go on sale or worry about overpaying for them. You can even score discounts on gift cards at Costco.

2. Cheap toys

If you’re buying for young kids, you don’t have to go all out. When my kids were little, they received some dollar store toys from family members that they played with for years. Years! Also, toys can be a great conduit for creating experiences. A few months ago, my kids took old Amazon boxes and glued them together. They made little forts out of them, and we set them up in the park near our house and had an hour-long Nerf war.

3. Books

If you’re hooked on giving experiences but don’t want to shell out the money this year, I’d recommend giving a book instead. Books are a fantastic way to give someone a thoughtful gift, and I’d argue that a good novel beats a mediocre concert any day.

4. Food

Taking someone out for a meal might be pricey these days, but there are plenty of other food gifts that you can give that are well under $25. Specialty doughnuts, chocolate, and coffee can fit into nearly any budget.

5. Photo book

You can score sentimental points and stay within your budget with this one. There are many companies with online tools to create and order photo books, including Google, Walgreens, Shutterfly, and Walmart. With a little time, a few photos, and less than $20, you can create a memorable softcover photo book.

Plan ahead to stay within your budget

I’ll let you in on a little secret: One of the best ways to stay within your Christmas shopping budget is to…have one. You’ll be far more likely to overspend if you only have a loose idea of your budget or how much you’ve already spent.

There are many great budgeting apps to help you keep track of your expenses, most of which connect to your bank account so you stay up to date as you shop. And if you need extra help tracking down deals, I’ve recently been trying out price comparison apps to help me find the best deals. You can even set deal alerts on some of them.

I’m still a big fan of experiences, but with prices rising for so many of them, now seems like a good time to scale back. You’ll probably miss out on a concert or two, but you might also gain an epic Nerf battle.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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