by Heather Tomasello

Created on: January 06, 2009   Last Updated: May 24, 2010

How to Have Lavish Holidays on a Shoestring Budget

According to CNN.com, last year the average American family planned to spend around $920 on holiday gifts. With families feeling the pinch of recent economic uncertainty, many are asking, "How can we give meaningful gifts to our loved ones while spending less money?"

Here are several ideas for creative and inexpensive gifts for the friends, family and children in your life. But first, you need to set your gift budget.

Setting a Smart Budget

Commit to setting and sticking to a gift budget this holiday season. First, list the names of people you want to buy/make a gift for. Immediate family members are easy to remember, but don't forget teachers, bosses, neighbors, etc. Next, write down specific gift ideas for each person and anticipated prices. If you can't think of a specific idea, write a specific dollar amount you hope to spend. Be realistic to avoid frustration while shopping.

Don't forget to list "hidden" miscellaneous expenses such as wrapping supplies like paper, tags and bows, and postage to mail gifts.

Add all of the dollar amounts. It's generally a good idea to tack on an additional 10% for other miscellaneous expenditures. How did you do? Is your total more than you'd hoped to spend, less, or right on the mark? If your budget is way over, perhaps some of the gift ideas mentioned below can help you cut down the anticipated price column!

Keep this "smart" gift list with you when you shop. Note the item(s) you purchase for each person and actual costs. How many times have you asked yourself, "What did I Aunt Milly for Christmas last year?" Save this list for from year to year, and you'll know! It will make creating future budgets easier as well.

Gifts for Friends

These suggestions also apply to neighbors, teachers, bosses, and others.

Give green. Select a houseplant or garden plant and wrap it in a canvas bag. For the gourmet, potted herbs wrapped in a nice dish towel make a thoughtful gift.

Give expertise. Do you have a talent or hobby that others admire? Perhaps you know how to scrapbook, crochet, take photographs, serve a tennis ball, cook a mean spaghetti and meatballs, etc. Give an hour "lesson."

Give a meal. Line a nice basket with a dish towel and place a container of salad, soup, other main dish, a loaf of bread and dessert. Who doesn't appreciate a ready-to-go meal during the busy holiday season?

Gifts for Family

Give a memory. If your family lives nearby, carve out a time during the hectic month of December to take your mom and sisters out for tea. Take your father and brothers for a round of golf.

Give a memory II. For out-of-town family, grandparents, etc. photo calendars make nice gifts. You can make one at a local print shop or online through various photo retailers such as kodakgallery.com, winkflash.com, or snapfish.com.

Give homemade. Everyone thinks of cookies and fudge, but why not be creative (and more diet-friendly)? Try making soaps (materials available at craft stores and clean-up is a breeze,) candles, or jewelry, for example.

Gifts for Children

Give the gift of time. It's what your children really want anyway! Set a date for a fishing trip with your son, or to take your daughter roller skating. Mark it on your calendar and be certain to follow through.

Give a "Month Club." Cookie of the Month, Sports Event of the Month, Craft of the Month, etc. Experience the spirit and fun of the holidays all year long!

Give a family gift. Choose to buy one larger gift for the entire family, such as a membership to MOSI, Lowry Park Zoo, or Busch Gardens.

Focus on gifts that build the special relationships in your life without breaking the bank, and this truly will be the "most wonderful time of the year!"

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