by Mary Brotherton

Created on: November 01, 2009   Last Updated: November 04, 2009

I've created my own twelve-step plan to save money on gifts.

1. Know your budget's limits. It is far more important to pay your bills and keep food on the table than to impress your family and friends with extravagant gifts. Don't sell yourself short, but don't go into debt for gifts

2. Know your recipients. Don't purchase pierced earrings for a woman whose ears aren't pierced or buy sweets for a diabetic. People receiving your gifts will treasure you and the gifts if you understand something about what they like

3. Realize you cannot buy gifts for everyone you know. Give generously when you can, but everybody does not need to receive a gift from you, simply because "It's the holidays."

4. Anticipate surprise gifts and plan ahead within your budget if you feel the need to reciprocate. Pre-purchase gift certificates or stuff envelopes with cash or simply thank the giver and move on.

5. Throw guilt out the door. You can do only what you can do and should never feel guilty if you forget someone. Be a gracious receiver. Guilt should never be a part of the holiday season.

6. Wrap frugally and make the wrapping/placement part of the gift adventure. Supermarket paper bags are free and make excellent wrappers for gifts; then you can then splurge a little with the topping. After you've purchased the gift and wrapped it, what's next? The presentation. Wrap an inexpensive small item inside a layer of wrapped boxes, so the unwrapping is part of the gift. Wrap the gift inside another gift such as a coffee mug, or put a gift certificate inside a book. Another option is to wrap a note with a clue to the next location. Wrap the second clue and the chase is on! After three or four false clues, the game grows old, so you may want to have the gift somewhere nearby.

7. Think about gifts all year long. If you see a gift in June that someone will love, buy it then. Create a special Christmas Gift closet, shelf or drawer for all your gifts so you can easily find them next year.

8. Think about gifts for next year immediately after Christmas. Until the end of January, and even into February in some stores, Christmas items are drastically marked down. In addition to holiday wrapping and decorations, this is a great time to buy seasonal items to give next year. Often, things are packaged just for Christmas, and now you have an inexpensive alternative to something that might otherwise cost five to ten times as much during the season.

9. Check into thrift stores regularly. People often receive gifts they cannot use or do not like. Rather than exchanging them or discarding them outright, they generously donate them to thrift stores. You can pick up some great, new or barely used items in thrift stores. If you have a bookworm on your list, thrift stores allow you to "wow" them in quantity alone.

10. Purchase in bulk whenever possible. If you shop at a wholesale discount store, you might find items you need now, but you could also share as gifts later. If you only need one package, but the item sells in sets of thee, consider who might be able to use the other two.

11. Remember why you are buying a gift in the first place. Are you buying the gift because you care about the person or because you expect something in return? Are you buying it because you hope to see joy on the recipient's face when it's opened or because you feel obligated?

12. Give a story. If you are involved in a family or intimate office setting, after the last gift has been unwrapped, consider making the holiday last by reading from a classic Christmas story or retelling a favorite holiday memory. For homes with small children, this might be best saved for bedtime.

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