How to Give Gifts on a Fixed Income (Retirement)

The holiday season is fast approaching—and you know what that means! It’s time to start thinking about gift-giving. Of course, if you are on a fixed income, this can be a very stressful portion of the year.

You aren’t alone, as millions of Americans also live on a fixed income. Keep reading to discover our suggestions for giving gifts on a fixed budget.

1. Start Early

If you wait to shop until after Thanksgiving, that only leaves you one month of income to try and shop for your whole family. We recommend starting to think about shopping in September, so you can spread the costs of gifts over four disbursements instead of one.

One of the reasons many individuals don’t do this is that they think the best deals come on Black Friday. We hate to break it to you, but Black Friday is a scam (many companies raise prices on November 1 so they can “drop” them on the Friday after Thanksgiving) and though there are a few good deals, it’s rare they are the exact gift on your list, so you a better off shopping early.

2. Re-Gift When Possible (And Practical)

Maybe your neighbor brought you a jar of honey you will never use, or you have a lot of books on your shelf you never plan to read. Re-gifting (within reason) is okay. Just make sure you aren’t giving the gift back to the person who gave it to you, and you’ll be fine.

Also, try to make sure the item looks new, if this means buying boxes (for jewelry) or paying to have things cleaned, then consider that as the “cost” of the item.

3. Baked Goods Gift Well

If you are still able to bake, then a pan of brownies can often be just as appreciated as a new sweater! Of course, you won’t be able to cook too far in advance, meaning you need to have time the week of Christmas to make these gifts, but trust us, your family won’t even notice they didn’t get a physical gift.

4. Take Everyone Out for a Meal

My grandparents didn’t give physical gifts. Instead, every year, on December 27^th, they took the whole family out for brunch. It was a local chain like Denny’s, and I know the bill was probably about $450. To spread the cost, my grandfather would buy a $50 gift card to the restaurant each month. So, when December came around, he had $600 in gift cards and could tell everyone to order whatever they wanted (to my knowledge, even with 25 of us, we never passed the $600), then he would just leave the rest as a tip for the server. To this date, I still think this is one of the best ways to treat the whole family (and the server!) while on a budget!

In the years since, I’ve heard of friends’ grandparents doing the same thing—either paying for everyone to go to a buffet, or taking everyone out for a meal they can afford. Either way, it’s a gift appreciated by all.

5. Make Gifts

Those who still have the ability to make gifts should definitely do so. If you can sew or knit, consider gifting sweaters or mittens to each member of the family. For those who are good at woodworking, birdhouses or bird feeders make great gifts too.

Obviously, it will take you time to make all these gifts (another reason to start early), and you may not be able to make one for everyone. For this reason, we recommend combining this method of gift giving with baked goods, and re-gifting until you are able to get something for everyone on your list.

6. Head to the Thrift Store

Hear us out, while the thrift store isn’t ideal for everyone on your list, it’s a great way to find budget toys for kids and books for adult family members. Trust us, the kids won’t even notice the toy isn’t used (just wash it first), and no one cares when books come pre-read. Just be prepared to make multiple journeys to the thrift store, as the stock changes constantly, and you might have to wait if you are searching for something more specific.

7. Gift Your Time

This is another unique gift that we guarantee your children (and their children) will love! Write certain items on paper and put them in an envelope. For example, for your grown children (who have children of their own), you can gift 4 hours of free babysitting. To your grandchildren, you can gift “learn to bake my famous lemon loaf” or “learn gardening secrets with grandpa,” both of which are sure to be a hit (if the kid has been asking!)

Even if your grandkids aren’t that interested in activities around your home, you can gift taking them to a movie, or lunch at McDonald’s. Not only does this move the gift away from the holiday (allowing you to use your January disbursement), but two $10 movie tickets can be cheaper than most gifts at the store, especially if you share a popcorn or sneak in your own bag of M&Ms.

You can also gift a home movie night where you watch a movie you already have on hand, but pick up special treats from the grocery store—the sky is the limit with gifts of time!

8. Propose a Gift Exchange

In large families, even with all of the above options, Christmas can still be tight on the wallet. In these cases, it’s best to propose a gift exchange. My family moved to an exchange about 5 years ago, and it was the best thing we ever did. Now, anyone over 18 is added to the hat and buys 1, $50 gift for the person they’ve been assigned. This way, everyone gets one item they really want, and each individual only spends $50.

I’ve also seen families move to a White Elephant, or other crazy gift exchange game, which, while a good idea (and you should consider it), is a bit less personalized.