St. Louis Fed Offers Tips to Save on Valentine’s Day Gifts and Celebrations

ST. LOUIS — As Valentine's Day approaches, the Federal Reserve Bank of St. Louis Fed has tips on how to show your Valentine love without breaking their heart or the bank.

With the price of chocolate, gold, silver and many other goods and services higher than in years past, money-saving strategies can alleviate the high cost of love, said Liz Senzee, St. Louis Fed Economy Museum education specialist. Cacao beans, the base of chocolate, have risen in price by 45% over the past two years, according to an upcoming FRED blog.

“For many people, their love language is giving a gift,” Senzee said. “But a gift doesn’t have to cost a lot; it just has to mean a lot.”

Economists have even studied how people perceive the value of gifts. When someone receives a gift that they think is a lower value than what the giver actually paid for it, economists call that “deadweight loss,” according to a lesson available for free at Federal Reserve Education.org.

“In my experience, the best gifts are ones given from the heart,” Senzee said.

Here are her tips for Valentine’s Day savings:

• Set a Budget: Whether it’s a party, cards or a major gift such as jewelry, set a budget and stick to it.
• Share a babysitter with another family or trade babysitting with another couple who want to go out on a different night.
• Cook dinner at home: Cooking together can be fun and a way to re-engage as a couple.
• Make a card, cookies or gift: Homemade presents and cards can become keepsakes and demonstrate affection through effort.
• Give experiences rather than things: Set up a blind tasting for flavored hot chocolate, hard candies, sparkling wines, or for kids, a sensory “feel and guess” game with varied textured items.
• Look for discounts and sales on gifts or cards.
• Use price comparison tools to look for the lowest prices.
• Visit the Economy Museum for free: The museum has family-friendly activities such as a Valentine heart scavenger hunt and make-your-own Valentine supplies – a great freebie for kids.

The Economy Museum is open Monday through Friday from 9 a.m. to 3 p.m. at One Federal Reserve Plaza.