How to Have a Merry Christmas on a Budget

With many Americans now facing greater financial challenges than they were a year ago, the upcoming holiday season may leave us with more feelings of dread than excitement.  After all, the holidays are an expensive time of year.  There are gifts to purchase, meals to prepare, and family members to host and entertain.  In spite of all this, it is still possible to have a wonderful holiday season while sticking to a budget.  We'll explain how by breaking things down into the five main areas where our holiday dollars are spent.

Gifts:
Christmas gift shopping often takes up the largest part of a family's holiday budget.  If you want to save money on gifts, planning is key.  First, create a budget, outlining how much you have to spend and what you want to buy for each person.  Next, watch the sale ads in your local newspaper and check prices online.  Don't forget to keep an eye out for discount coupons or rebate offers that can also add up to additional savings.  Buying online is also a good way to save gas money and valuable time, and it can cut down on impulse purchases, too, since you won't be at a mall, tempted by lots of other things you don't need.  Another great money-saving idea is to make homemade gifts for everyone.  If you aren't very crafty, remember that your time is also a very valuable gift.  Coupon books for services like babysitting, handyman repairs, or yard work are also well received and appreciated.

Food:
There are many ways you can save money on food at the holidays.  If you are hosting a large dinner, consider making it a potluck where each person contributes a dish to the meal.  This allows everyone to share in the cost and also creates a varied meal where many families' specialties can be sampled.  Another way you can save money on large family meals is by breaking tradition.  Perhaps everyone would enjoy chicken or pasta on Christmas Eve rather than ham or beef tenderloin.  Another alternative to an expensive dinner is to do a low-key brunch on Christmas morning after opening gifts.  This can be a refreshing change for family members who are traveling and need to get on the road early.  If traveling is in your plans, be sure to pack some healthy snacks and drinks for the car.  This will cut down on the expense of fast food at gas stations and restaurants.

Entertainment:
It's usually easy to cut back on spending for entertainment, if you simply take advantage of free family activities.  For example, take your children to see Santa Claus at the mall, or if you don't have kids, go watch other children tell Santa what they want for Christmas.  If you live in a cold weather climate, participate in outdoor activities like sledding at the park, ice skating on a frozen pond, or building a snowman in the backyard.  Instead of going to the movies, just watch some holiday programs that are broadcast on television during the month of December, or better yet, attend a free holiday play or concert at your local church, community center, or school.

Decorations:
The best way to save money on holiday decorations is by making do with what you already have.  If you simply must buy some different items, consider buying used decorations from garage sales, auctions, or online sites like Craigslist.  If you can make yourself wait until after Christmas, stock up for the following year by taking advantage of post-Christmas sales.  On December 26 and after, most holiday items can be bought for half or a quarter of the original price.

Contributions:
Even on the sparsest budget, it is still possible to give back to the community at the holidays.  Many charities and organizations value your time even more than a monetary contribution.  Consider donating some gently used clothing or other items to a homeless shelter, or volunteering your time to serve dinner at a soup kitchen.  Other options might include answering phones at a call center or ringing a bell to solicit donations at a local grocery store or mall.  These are all great ways to give back without dipping into your bank account.

With all of these suggestions, we hope you'll realize that it's not impossible to stick to a budget at the holidays.  With a little careful planning and a few minor changes in your activities, you will hopefully find yourself at the end of the season with plenty of good memories, a warm feeling in your heart, and some money left in your pocket.