As holiday shopping ramps up, many families are feeling the pinch of rising prices — a trend experts now call “giftflation.” The term refers to the increasing cost of common holiday gifts as well as the growing pressure to buy bigger and better presents. NerdWallet personal finance expert K imberly Palmer said this year’s spending is expected to rise, with consumers planning to spend an average of $182 more on gifts compared to last year. “People are taking this moment to say, regardless of the chaos going on around us, I still want to celebrate this season and just going in full embrace of the holiday season, which often means spending more on gifts,” Palmer said. But if your budget doesn’t allow for higher spending, Palmer said you don’t have to succumb to giftflation to show your loved ones you care. “The more effort and thought you put into a gift, the less you have to spend,” she said. Tip 1: Get personal and creative Planning a coffee date or making something by hand can reduce costs while adding meaning. “Putting a little creativity in, I think, often helps us save money,” Palmer said. Tip 2: Reset expectations Talking openly with family about spending limits can ease financial pressure. “Often, our family and friends, they don’t want us to spend as much as would put us into financial distress. So scaling back and even just giving people a heads up ahead of time and saying, ‘Hey, let’s just limit our spending on gifts this year’,” she said. Tip 3: Try Secret Santa or White Elephant Buying for one person instead of everyone in the group can significantly cut costs. “First of all, you’re saving so much money. And second of all, you’re creating this fun tradition, and it can be such a great experience to do a gift exchange,” Palmer said. Tip 4: Set a budget — and stick to it Palmer said establishing a total spending limit early can prevent overspending and post-holiday stress. “If you don’t do that, it’s really easy to double up on gifts to overspend, and then you end up having debt, having financial stress,” she said. Tip 5: Shop second-hand Second-hand stores and online resale apps can offer big-ticket items at a steep discount. Searching for “NWT,” meaning “new with tags,” can help shoppers find unused items for less. This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication. ...read more read less