Christmas is a time when many people are stressed, looking for cheap gifts for their loved ones and often overlook very obvious misleading advertising. Black Friday, for example, combined with shopping malls full of lights, the smell of candy and Christmas songs, literally acts as an invitation to buy more than usual. Because, after all, discounts are worth it. But the reality is a little different.

The reason for gifts should be the enjoyment of them, not the bargain. Advertisements entice us and we often buy things we didn’t want in the first place. And that’s only because they are cheap and worthwhile. And maybe, in theory, the giver will appreciate them. We think practically instead of actually thinking of an original gift that will please. With rising inflation, the tricks of marketers and the psychology of advertising, Christmas is looking more and more like a financial trap.

Holidays as a financial roller coaster

According to a recent U.S. market report, U.S. adults plan to spend an average of $1,107 on gifts this year. And that’s roughly $180 more than last year. But that doesn’t mean it’s an increase in the real volume of purchases. Rather, it’s an increase in prices. Moreover, in Europe this year, retailers are forecasting a 3.1% increase in money spent on gifts between November 1 and December 24 compared to last year. These figures from the current data suggest that although we appear to be investing more in Christmas, in reality it may just be higher prices, not a real increase in the value of gifts or utility.

Bargains are not always bargains

Marketing does its mission very well. And people are changing behaviour accordingly. Adverts, discounts and exclusive offers create a sense of urgency and exclusivity. Companies use phenomena like Black Friday or Cyber Monday as key moments when the consumer reacts emotionally, not rationally. According to US data, online sales have grown significantly faster than bricks-and-mortar stores this year.

Indeed, the online environment allows for repeated so-called refreshing of offers, often before the holiday season really begins. This means that the pressure to buy can last much longer. Consumers today often go not for what is cheapest, but for what looks like a discount. This can mean that although we pay more, we get the same or even smaller quantities or goods of lesser quality. We just don’t realise it.

The bright and shining shop windows are usually just a lure that makes us not realise that Christmas discounts are often just a gimmick. ━━ The bright and shining shop windows are usually just a lure that makes us not realise that Christmas discounts are often just a gimmick. ( Source: Harold Wijnholds /  Unsplash+ )

How to defend against holiday traps?

Create a sensible budget and stick to it. According to a US study, less than half of consumers have a budget for gifts this year. However, 40% haven’t defined it at all. Those who don’t have a budget are extremely likely to spend more than they planned. Therefore, even a simple decision about how much you want and can spend is enough. And you better write it down! A budget does a lot of the work for your mind because you put less emotion, less impulse, less stress into your purchases.

A common trap is a discount that looks great, but it’s just a percentage game. Instead of automatically buying cheap products, think about what the gift means. Will it serve you well? Will it please? Will it fit in a corner somewhere? If you’re thinking of a gift that will be put to real use and make you happy, discounts will never be the deciding parameter.