by Becky Robbins

Created on: November 29, 2009

The cost of Christmas has skyrocketed over the years. In the past, children were satisfied with a couple of toys, maybe some crayons and coloring books. Now, the demand for electronics is getting out of hand. In a day and age when everyone needs to cut back, it should not come as a surprise that Santa needs to cut back too. There are plenty of ways you can cut the cost of Christmas and still have a great time.

Homemade Versus Store Bought

Gift giving should come from the heart. When you look at the list of people to shop for, that list can seem a mile long when you add all your children, parents, siblings, extended family, school teachers, neighbors, co-workers, friends. Even gifts for the mailman, trash collector, and other service providers are expected.

Instead of heading to the store and spending hundreds of dollars on useless items, that will probably wind up on the shelf (let's be realistic), get creative. If you can knit or crochet, think blankets, mittens, scarves, even sweaters. If you are better with wood, think of boxes that you can design or even a bookshelf. Get creative! People appreciate hard work and it means so much more when you have worked hard to create it.

Baked Goods

Perhaps baking is your forte. You can honor your neighbors, service providers, and co-workers with tasty fudge, breads, cookies, brownies, and pies. The saying that the way to a person's heart is through their stomach is true. Receiving baked goods is an exciting gift. You also know that it will be used.

Drawing Names

If you have a large family or extended family, purchasing gifts can add up. Instead of worrying about spending $10 or $20 on a gift for each family member, you would only have a name or two to focus on buying for. Then everyone can agree on a spending limit and share wish lists. It's a great way to save money and still enjoy the holiday season.

Dirty Santa

If you are exchanging gifts with co-workers, consider holding a Dirty Santa game. Every person plays this game a little differently. Again set a spending limit, for example $5 or $10. Each person brings a wrapped present and places it under the tree. There will be a bowl or hat that has scraps of paper with a number for each gift on it. Each person draws a number and the trick is that the higher the number, the better for you. If you have a higher number, you will see more opened gifts. The person with #1 chooses a gift from the pile and opens it. The person who has #2 can either steal that gift or choose to open another gift from under the tree. This continues on with each subsequent number either stealing a gift or choosing to open a gift. It's a lot of fun and a creative way to keep your budget low.

These are just a few ideas to reduce your spending at Christmas time. Keep in mind that as you plan for Christmas shopping; create a budget for how much you will spend on gifts. Stick to that budget and the season will go as you need it to. By incorporating some of the ideas above, you will bring back that magical feeling of love and family during the holidays.

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