5 Easy Rules Helped Our Family of 6 Stop Overspending at Christmas

Each year, our Christmas season gets increasingly expensive. There are six of us in our family, and then, of course, there are aunts, uncles, cousins, grandparents, teachers, and bus drivers that we also like to show our appreciation to. The list goes on and on.

As financially savvy as we try to be, we’ve found that sticking to a few simple gift-giving rules is our best bet to avoid excess spending during the happiest season.

Cousins exchange gifts with a budget in mind

I absolutely love watching my nephews and niece open their holiday gifts, many of which were picked out by my four kids. However, with so many kids to buy for, this cousin gift exchange quickly added up in the past.

To keep things manageable, my siblings and I usually plan for our kids to exchange a set item — one year, the kids all gave books to each other — or stick to a budget of $10 per kid. Each cousin gets one gift from the other family, so we’re able to keep costs down.

My kids love the challenge of finding the perfect gift for their younger cousins, all while keeping a budget in mind. It becomes like a game to them in the store.

We follow a four-gift rule for our own kids

For Christmas, we give each of our four kids four gifts to open, following our family tradition of the four-gift rule. They get something they want, something they need, something they can wear, and something they will read.

For example, one kiddo will get the latest graphic novel, sports socks, an earring set, and a small box of their favorite snacks. This not only makes holiday shopping easier, but also ensures that the kids receive items they actually want and use.

The four-gift rule also instills some equality between the kids, as well as they know what to expect.

Our kids exchange gifts among each other

During Thanksgiving break, we put our kids’ four names in a bowl, and they each draw one name. They look at their sibling’s wish list and choose one item to buy using their own allowance.

Once the items arrive, the sibling wraps the gift and places it under the tree. This is less expensive, and usually results in one nicer gift per child compared to buying three cheaper gifts to spread out among siblings. We love this tradition as it requires thoughtfulness and generosity.

Sometimes the kids make handmade gifts, usually cards, for me and their dad.

We enjoy holiday traditions that don’t involve gifting

Some of our kids’ favorite traditions are free or nearly free and we lean into these heavily during the holiday season.

We all love decorating our Christmas trees. Yes, we have more than one. They also enjoy choosing which cookies to bake and share: peanut-butter reindeer and wedding cookies are our usual favorites.

One kid likes helping their dad hang up Christmas lights above the garage that we always leave up well past Christmas. We also love a good popcorn and movie night, often enjoying Christmas movies from my own childhood.

We give to others

My kids each save 10% of their allowance throughout the year, and we collectively decide what to do with those earnings in December.

In the past, we have shopped for a family in need or children in foster care. One year, we purchased new bedding for an organization that builds beds for children.

This year, we plan to stock free food boxes around our town where anyone can take the food items they need.

This tradition is a beautiful reminder that giving is just as beautiful, if not more so, than receiving.