MONEY:

the art of savvy giving

Gift giving is something most of us love doing but it can really blow our budget over the year. This year, start early and plan how you can give the people on your list something they will love without it costing the earth. The knack of giving without breaking the bank is being organised – and as we all know but rarely action – the enemy of smart shopping is last-minute panic buying.

First stop is MoneySmarts’ TrackMySPEND app, which will track all your expenses and help determine your budget for gifts. You can also nominate a spending limit for gifts within the app.

Then, list all the things you need to pay for across the year and build in a contingency amount for unexpected gifts. If it adds up to more than your budget, it’s time to pare it back.

Once you have your year plan, try to shop early and often. Scour the January sales for specific items to suit the people on your list, and put these aside. Don’t forget to hunt down any unused or partly used gift cards.

Browsing second hand op shops at the start of the year can yield great bargains on new items that someone bought on impulse and never used, or unwanted Christmas gifts. It’s also a time when people like to de-clutter and often find it easier to give good quality items away than spend the time selling them.

If you want to stretch your gift-giving budget to give a better gift than you can afford, say for a significant birthday, suggest combining funds with family or friends. For bigger gifts, investigate using extended payment systems such as Afterpay (afterpay. com), because this gives you more time to pay them off. Just make sure you meet all the terms and conditions so it does not end up costing your more (see breakout).

Remember that not all gifts have to be bought. Many of us have talents that we can turn into presents. If you can sew, cook, garden, take great photographs or do craft, you can make some of your gifts for far less than you would pay retail. And you can personalise them – something not always possible with bought goods.

If you have some spare time, gifts of time – think gardening, babysitting, house cleaning – can work well for time-poor relatives or friends. A delicious home-cooked meal can be a great gift for a relative or friend who never has time to cook for themselves.

Take stock of what you already have. Do you have items, such as presents you’ve never used, that you can re-gift? (Make sure you don’t give something back to the person who gave it to you!) While doing this, also put aside things you no longer use or need to sell to build your gifting cash stash.

Finally, consider giving an experience as a gift. Sometimes time spent with family or a friend is the best gift of all. It’s especially good for kids – ditch the cheap plastic toys and think picnic, a day at the beach, a kid-friendly museum or a movie night with popcorn.