by Todd Pheifer

Created on: October 13, 2008   Last Updated: December 15, 2008

Running up the bills

Most people would agree that the holiday season can be very expensive. The combination of presents, parties, and decorations is a recipe for high credit card balances and drained bank accounts. The difficulty is that many people feel a certain obligation to expend money, particularly on presents.

"Cheapskate"

No one wants to come across as "cheap", so some people will risk financial trouble rather than cut back on giving. This is a noble sentiment, but it doesn't mean that people have to spend irresponsibly and hope that they win the lottery in January. Here are a few ways to cut back on those expenses and still invoke the "spirit" of the season.

Skip the tree

I know that this is a sacrilegious suggestion for some people, but one way to spend less money is to skip the Christmas tree. Not everyone celebrates Christmas, but a very high percentage of people who do celebrate this holiday will get a tree. Unfortunately, a tree can be an expensive venture, coupled with the fact that chopping down a tree in order to display it for a few weeks is not the most environmentally friendly tradition. People need to remember that traditions can change, and there are other ways to festively decorate the house.

Charitable contributions

Another way to be generous but contribute in a broader sense is to make a contribution to a charitable organization in someone's name. This can substitute for a traditional "present." Granted, some people are looking forward to getting new "stuff" during the holidays so this strategy should be done with some care. However, it can be a way of fulfilling the generosity of the season, particularly if your family and friends are not truly in financial need. It can also shift the focus away from material accumulation, and more towards meeting the needs of those that are less fortunate.

Homemade

Saving money around the hoiidays may be aided by creating gifts at home, rather than buying retail items. People who are good in the kitchen or are talented with crafts may be able to assemble cheaper and ultimately more personal gifts for people. Granted, not everyone is gifted in these areas so they shouldn't be forced if the ability isn't there. However, if the talent for creation exist, people may be able to put together gifts from items they already have in the house rather than adding another purchase to the credit card.

Agree to skip presents

Finally, there is no rule that says presents must be exchanged. If everyone is struggling with his or her cash flow, there is nothing wrong with skipping presents for a year. This can work especially well for adults who may not need another "trinket" to add to their collection. If people are hesitant to pass on presents altogether, families can draw names so that only a certain number of presents have to be given. Or, a price limit can be put in place so that people do not feel obligated to spend a certain amount.

Be generous, but smart

Again, saving money during the holidays is about making prudent decisions and recognizing that it isn't always the presents and decorations that make it a festive time. Those things are appreciated, but generosity is about giving to others, particularly those who do not have as much. Also, the holidays are about people, and getting together does not have to include a lot of expenditures. Enjoy the holiday season by making it a time where relationships grow rather than credit card balances.

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