As Holiday Shopping Kicks Off, Consider Adding Some Financial Literacy to Your Child's Wish List

Black Friday and Cyber Monday make now a prime time to teach your child some financial literacy and consider focusing on experiences rather than spending hard-earned money on material gifts.

A mom and her young daughter look through a shop window while holiday shopping.

(Image credit: Getty Images)

By D'Andre Clayton, IRMAACP

published 28 November 2025

in Features

On the heels of the longest federal government shutdown in U.S. history, the holiday shopping season is here, and Americans are not letting recent economic pressures stop them from making their list and checking it twice.

According to a survey from ecommerce marketing company Omnisend, Americans are expected to spend nearly $80 billion on Black Friday today and Cyber Monday.

That's a $20 billion increase from last year. But with tens of thousands of job layoffs, mounting credit card debt and lingering inflation, how are Americans affording this?

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At first glance, it may seem like this is a positive boost in consumer confidence, but what's really happening is financial denial and retail therapy.

Pressure to shop proliferates

In today's climate, there's so much pressure to buy. Advertisements are virtually everywhere, and they only get worse during the holiday season when retailers promise big deals and savings.

Add online shopping with near-instant delivery and buy now, pay later options and the budget feels limitless. Especially if you're shopping for young children. But is that material item worth clocking in extra hours at work or taking on more debt than you can afford?

The obvious answer is no, but it's not that simple. During a time when inflation is eroding people's purchasing power, there's a lot of guilt associated with paying full price. Retailers know this, and they sometimes use it to their advantage.

Some may artificially inflate the original price of an item to make it appear as if you're getting a deal. They may even add an expiration date to create urgency.

Under these conditions, you're more likely to buy on impulse under the guise that you're saving money when that may not be the case.

Tools like CamelCamelCamel and Honey allow you to check an item's price history.

It's also a good idea to shop around. If you notice multiple retailers are discounting the same product, the sale is likely legit.

However, if you see an item being advertised for 50% to 75% off for one day only, it may be advantageous to skip it — especially if it's from an unknown brand.

Consider some financial literacy

So why is this important? Holidays can be a stressful time for parents who are trying to provide the best Christmas for their children, and the pressure to get every item on their list can be intense — no matter how much it costs.

But if money is tight this year, breaking the bank to get a material item that may hold your child's attention for a few weeks isn't worth racking up debt for.

In fact, it may be the perfect opportunity to teach your child what this season is all about and the importance of financial literacy.

Now, I'm not suggesting parents should skip the gifts altogether, but consider having an age-appropriate conversation with your children about what's going on.

Explain that prices are higher this year and that you don't have room in the budget to get everything on their wish list.

Focus on thoughtfulness over abundance. Teach your children that gifts are meaningful because of the care and effort that are put into them, not because of the cost or the type of item.

Put together a shared gift plan

Another option is to create a shared gift plan. Sit down with your child and make a list of who they want to get small gifts for, such as siblings, friends or teachers. Give each person on the list a target budget and stick to it. This will help them understand that money is finite.

Depending on their age, you can also encourage them to use their own money to buy the gifts. Help them research where to buy things, compare prices and decide what items are "worth" the money.

By using their own money, your child learns the value of a dollar and that sometimes sacrifices have to be made. It also teaches them that money is earned — if you want something, you have to work for it.

Alternative gift options

As you're preparing for the holidays, remember the reason behind the season. Are you getting gifts simply because it is tradition? Are there other more affordable times throughout the year when you could show that person how much they mean to you?

Perhaps you could take a special trip in the summer or give yourself more time to save money by buying them something for their birthday.

If your budget is tight this season, don't let the pressures of the holidays force you to make choices you cannot afford.

Consider spending quality time with one another by creating memories and experiences, rather than focusing on material items that can easily be replaced or forgotten.

Picking up the phone to call a loved one or sending them a card goes a long way, too. Oftentimes, that's more meaningful and authentic.

There's no shame in going back to the basics this holiday season — the memories and experiences created instead are priceless.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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D’Andre Clayton is the co-founder of Clayton Financial Solutions. He's an experienced insurance professional who has conducted numerous financial seminars, specifically partnering with health care professionals due to his experience in Medicare. He approaches each potential client as if they were a member of his family.