10 Holiday Giving Tips for Retirees on a Budget

For many older adults, that means prioritizing your kids and (especially) grandkids. Think hard about anyone else who made the first list, Johnson says.

How do you decide? “Everyone has a different philosophy,” says Shaneece Gaines, senior manager of economic and financial security at the National Council on Aging, but she recommends asking yourself a few questions: Who showed up for you this year? Who had the most impact on your life? Who will be most disappointed if they don’t get something?

Another option is to make two lists — one for those you’ll spend money on and another for people you might give something personal that costs little or nothing, like a handmade item or favorite photo.

4. Give equally

When it comes to your children and grandchildren, it’s important to try to gift equally, even if some are better off financially than others, Johnson says. That doesn’t mean you have to give identical gifts; just aim to spend roughly the same amount on each recipient. Assume they will talk to each other about what they got and, perhaps, how much it set you back.

“Equal money means equal love,” she says. “If you don’t give equally, they will think you love the other one more.”

5. Be honest about what you can do

If your gift-giving budget is particularly tight one year, it's reasonable to inform people who would normally expect something from you. For example, you could let your kids know they won’t be getting presents from you so you can focus on the grandchildren. (Of course, this only works for retirees whose kids all have kids.) It’s best to explain this well ahead of time so there are no disappointments or surprises, Johnson says.

6. Watch your gift spending — literally

Johnson suggests one simple method to put a hard cap your holiday spending: Put all the cash in your gift-giving budget in an envelope and draw it down. When the cash is gone, the shopping ends.

Another, somewhat less stringent option is to move a set amount of cash each month — say, $100 — from your checking account into another account you’ve designated for gift spending, she says.

7. Tap your talents

There are many ways to be generous besides buying expensive gifts, Gaines says. You can give the gift of your time and your talent.

“Everyone has alternatives for people they love,” Gaines says. If you’re a good cook, make them a special meal. If you have young grandchildren, offer to regularly babysit so your frazzled kids can get some time for themselves. If you’re an artist, make something special, like a decorated bookmark or a bespoke holiday card.

“We put so much pressure on ourselves to give gifts, and sometimes they appreciate the kind sentiments in the card more than the gift,” Gaines says.

8. Don’t leave college cash under the tree

For many people, there can be no greater present to a young relative than investing in their future education, but Glenn Downing, a founder and principal of the Miami financial planning firm CameronDowning, recommends against doing so in the form of gift-wrapped cash.

For one thing, many grandparents are already helping fund their grandchildren’s college costs through 529 savings plans. “I’d do [that] anyway and not make it do double duty as a Christmas gift,” Downing says.

For another, he adds, “people like to have a gift and open a present” — especially kids.

9. Remember what you’re giving for

“Ultimately, it really is the thought that counts,” Downing says. A gift's purpose is to make someone you love happy, and sentiment can achieve that as much, if not more, than expense.

 “A single long-stemmed red rose gets a husband the same romance points as a dozen roses,” he says. Or create something special for the tree or home decorations: “A special ornament is a really nice gift that one appreciates annually but needn't cost too much.”

10. Include yourself

“People tend to forget about themselves when it comes to gifting,” says Georgia Lord, head of financial planning at Corbett Road Wealth Management in New York City. “They have worked all their lives and saved so much money. I want to make sure they’re enjoying themselves, too."

It doesn’t need to be anything extravagant — a trip to the movies, perhaps, or a meal out at a place you love. What’s important is giving yourself a measure of self-care in what can be a stressful season, financially and emotionally.