How Much to Spend on Christmas Gifts for Kids?

How much is too much to spend on Christmas gifts for your children?

The holidays can become a gathering of aunts, uncles, cousins and grandparents that all contribute to the excessive gift giving to our young ones. Do children really understand the concept of Christmas gift giving? This year, the hottest gifts include two new game consoles: the PlayStation 4 ($400) and the Xbox One ($500).

After the global recession that started in 2008, the combination of high unemployment and devastated housing market caused people to spend a lot less at Christmas. In 2012, the average family spent around $750 on holiday gifts, and spending is expected to be up again in 2013, as unemployment has eased and the housing and automobile markets have started recovering. Discover Card released that at the end of October, holiday spending will be 20% more this Christmas than last. Discover Card estimates that the average family will spend just over $1000.

If you’re conflicted about how much money to spend, you’re not alone. Here are a few ways to keep your spending reasonable:

• Not buying “presents” for yourself

• Making a spending plan before shopping

• Giving group gifts

• Drawing names for gifts at large family gatherings

• Using cash rather than debit or credit cards for holiday shopping

No parent should spend more than they can afford during the holiday season. What is your family tradition towards gift giving? Leave us a comment below or on Facebook (click here)!

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