How tariffs might affect holiday shopping (and what parents can do)

As parents, we try to balance wish lists with the real-life costs of holiday shopping. With new tariffs on imports, the price of some of the most popular must-have gifts could creep up. The rules surrounding these tariffs are still being debated, but families may start to see the effects this holiday season.

What tariffs mean for your holiday list

Most holiday shopping lists have a few common categories: toys, tech, and clothes. And that’s where tariffs can sneak in and drive up prices.

So, what exactly is a tariff? It’s basically an extra tax on stuff that’s made in other countries and brought into the U.S. When companies have to pay more to import those items, some of that expense is often passed down to shoppers.

The unfortunate bottom line is that tariffs don’t change what kids ask for. But they can change what you have to pay. 

7 tips for families to stretch holiday budgets

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It’s definitely possible to keep holiday spending under control when you add in a little planning and creativity. Here are some ideas to try this holiday season.

1. Shop early

This is one of the easiest ways to avoid price hikes and last-minute chaos. As December approaches, things get more expensive and harder to find. Not to mention increased shipping costs! If you knock out your gift list now, you’ll have more options to choose from and much less stress later.

2. Comparison shop 

Some stores just absorb part of the cost to keep their products competitive, while others may pass it on to shoppers. Try to find the best price by comparing the product at multiple stores before buying. 

3. Look for alternative gift options

Not every great gift comes wrapped in shiny plastic. A handmade bracelet, a batch of your signature homemade caramels, a unique gift from a local craft fair, or tickets to do something fun together can be even more meaningful. 

And gifts don’t have to be brand new. A favorite book you loved or a gently used gadget still feels special when it’s picked with the recipient in mind.

4. Set a realistic budget 

Decide how much you’ll spend per child or per gift well ahead of shopping, and write it down. Treating your holiday budget like a shopping list makes it way easier to stay on track. And when you’ve already decided what you’re spending, those “one-day only” deals won’t be able to pull you off course.

5. Watch for deals

Black Friday and Cyber Monday still bring plenty of discounts, even if the price tags are higher this year. Signing up for retailer newsletters or alerts in an app can help you catch flash sales, while using price-tracking tools keeps you from guessing whether you’re really getting the best deal.

6. Find and use rewards 

If you have a credit card that earns cash back, loyalty points, or even gas rewards, you can work that into your budget. Just don't forget to check your credit card balances so interest charges don’t undo the savings!

7. Bring the focus back to the family

Not every holiday highlight has to come with a price tag. Family gatherings can be just as fun and memorable as a wrapped present. 

• Baking cookies as a family

• Driving around to see holiday lights

• Family movie or cooking nights

• Hosting an extended family game night

Experience-based holiday traditions can save money and create memories that don’t depend on the latest toy.

Talking to kids and teens about tariffs

Kids may hear the word “tariff” on the news but not understand what it means for them. The holiday season can be a natural time to explain it. Here are some things to try:

• Keep it simple. For example, try explaining it like: “A tariff is like an extra tax on products that come from other countries. Sometimes that makes them more expensive to buy and ship.”

• Connect it to their list. If they want a specific toy or game, point out how tariffs could increase the price or make it difficult to find.

• Teach trade-offs. Show them how families can adjust by swapping in an alternative gift, sticking to a set budget, and setting longer-term savings goals for the big-ticket stuff.

When it comes to holiday gift shopping, planning (and staying flexible) can take a lot of the pressure off. It’s also a reminder that the best parts of the holidays don’t have to cost a lot. The best moments truly come from time spent with the family in pajamas, baking cookies, visiting extended family, and creating new memories. 

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