Debt-free holiday shopping: How one mom uses her Ally Bank account to stay on budget
Medina’s love language is gift giving.
The mom of three and Ally Bank customer enjoys gifting so much, she keeps a year-round wish list, writing down items she knows will be perfect for her family and friends. But this holiday season, Medina is shifting her mindset.
“It’s really trying to find less of the ‘things’ and finding ways to show people you love them without going overboard.”
Concern over rising prices is the number one reason holiday shoppers are checking off their lists early this year. And Medina is no different. This season, she’s planning to spend $200 less and avoid taking on any debt … without sacrificing the joy of gift giving. Here’s how she'll stay on budget with the digital tools in her Ally Bank Spending and Savings Accounts.
Holiday overspending
37% of holiday shoppers are concerned about rising prices and are starting their shopping early. However, it can be easy for last-minute items, whether it’s gifts, decorations, groceries or travel, to add up over the season, potentially leading to overspending and debt. Medina, who knows the challenges of gift spending, plans to avoid unnecessary financial stress, while still ensuring her loved ones feel included.
Medina, a millennial mother and part-time legal secretary, has worked hard to educate herself on financial topics, become debt-free and sharpen her gift-giving approach. Using the spending buckets in her Ally Bank Spending Account, she’s able to plan and prepare for her gift purchases ahead of time, ensuring her spending stays on track.
Medina's sons pose in holiday pajamas in front of their decorated tree. Photo by Medina R.
Tools to manage gift spending
Some shoppers enjoy the last-minute holiday shopping rush. Medina takes a different approach. She considers her loved ones year-round, keeping an eye out for the “perfect” gifts.
“If I see something I think will be a great gift for somebody, I’ll pick it up,” she said, “but I’m trying to be better about not overdoing it.” She previously kept a closet filled with presents waiting to be given on holidays, birthdays, etc.
It’s not about how much you spend, it’s what you can do to make that person feel loved and cared for.
Now, Medina tries to keep her spending below $50 for each close friend and family member. She uses Ally Bank’s spending buckets in her Spending Account to set aside money each month in a “gift fund” to keep within that limit. If she finds something affordable, she’s able to move the leftover funds on to the next recipient.
Rather than focusing on the dollar amount, she buys with the recipient in mind.
“It’s not about how much you spend, it’s what you can do to make that person feel loved and cared for,” she said.
Medina’s seasonal shopping insights
Medina said overspending on presents can be uncomfortable both for the giver and for the recipient — not to mention the financial trouble overspending can bring. She has sensed that others feel a pressure to “match her energy” when it comes to gifting.
“It doesn’t have to be these grand, big gestures. It’s just the thought and intention behind them that really makes a difference in how much you can actually touch somebody without going overboard and spending too much.”
Finding and attending personalized events with someone is not only a great gift, but also a unique opportunity to create memories. Medina planned a birthday trip to the museum for her dinosaur-obsessed son and a metalsmithing class with one of her friends — each adventure was focused on the recipient's passions.
This gifting approach helps Medina maintain her money management methods and plan ahead with spending and savings buckets in her Ally Bank Spending and Savings Accounts to ensure these experiences are budgeted for in advance.
Takeaways for the holidays
As Medina has learned, small, genuine gestures can make a big impact in letting people know they’re important to you — and can take some pressure off seasonal gifting.
If you’re planning to shop for the holidays, preparing with tools like buckets ahead of time can help set you up for success. But remember: It’s not about how much money you spend. As Medina says, “It’s being there for the people you love.”
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