Unemployment is up; our 401(k)s are down. Banks are looking for
bailouts, and homeowners are trying to avoid foreclosure. It is
certainly not the holiday season to be stringing garlands of $100
bills up your staircase.
Unemployment is up; our 401(k)s are down. Banks are looking for bailouts, and homeowners are trying to avoid foreclosure. It is certainly not the holiday season to be stringing garlands of $100 bills up your staircase.
But that doesn’t mean you have to cancel Christmas. It is possible to celebrate without conspicuous consumption. We’ve talked to frugality experts to bring you a guide to having a thriftier – but still wonderful – holiday season.
Thoughtful gift giving
While less cash for gifts can seem like a major holiday downer, spending cutbacks can be an opportunity to re-examine the meaning of the holidays.
“When we don’t have the money to spend, we’re forced to focus,” said Gary Foreman of TheDollarStretcher.com. It’s a time to look at the quality of the gifts we’re giving, not just the quantity.
And giving quality gifts requires some pre-planning.
Sharon Harvey Rosenberg, “The Frugal Duchess,” suggests taking an inventory of the folks on your gift list before you start shopping: Who are they? What do they like? What do they need?
Here are a few suggestions for thoughtful gifts:
– Gift baskets: Customize a basket to your recipient’s interest. Home-assembled baskets can cost as little as $10 to $15. A few theme examples: Spa items from the discount racks at Marshall’s, TJ Maxx, Bed Bath & Beyond or even the drug store; bakeware and supplies from the dollar store; gardening supplies from Home Depot or Target. The items can be assembled in a basket/container you already own or pick up a thrift shop and personalized with things like notes or recipes. Package the whole thing up with cellophane and a bow.
– Childhood books: Find out your recipient’s favorite book. You can look for a vintage book on eBay or Amazon.com and at second hand bookstores. Customize with an inscription.
n Written notes: Telling someone how you feel about them is truly priceless. Write a personal letter about “what you mean to me” or “what you taught me.” You can also frame the note for added impact.
– Handicrafts: Do you knit? Scrapbook? Bake? Put those skills to good use on handmade gifts. The key, however, is to know your audience and be careful about what you spend on supplies. Buying hundreds of doodads for your scrapbook can easily set you back more than a traditional gift. Watch those pennies.
– Photos: Gathering all the grandkids for a photo is infinitely more meaningful than another jogging suit.
Gift-giving strategy
When you are buying for your family, your extended family, your in-laws, your mailman and half the teenage babysitters in town, Christmas can easily get out of hand. Here are a few suggestions to cut down on the number of gifts you’re buying and regain some sanity:
– Grab bag: Get family or extended family to go in for a grab bag. Have everyone pick names and purchase a gift for just one other person. Set a dollar amount on the gifts. Instead of buying 20 gifts, you end up purchasing one; and hopefully getting one you actually want. You may want to have participants submit suggestions, along with their names.
– Grab bag, part 2: Go for a fun and silly holiday game (often called White Elephant or Yankee Swap). Everyone brings a $5 gift and contributes it to the pile. Take turns picking – or stealing – each others gifts.
– Grab bag, part 3: Really, we could go on with parts 4, 5 and 6, but we’ll end here. Kick the White Elephant up another notch by bringing items from your household that you no longer want or need. You eliminate all spending and participate in some recycling at the same time, Foreman said. One man’s avocado green fondue pot is another man’s treasure.
– Skip the gifts: Plan a family get-together instead of exchanging gifts. Play games, watch old family videos or share favorite memories.
– Thank you notes: Rather than buy every service provider on your list a mug or candy jar, write a note of appreciation.
– Teacher donation: Ask your child’s teacher what he or she really needs for their classroom. Books? Toys? School supplies? Instead of a teacher appreciation gift, donate items from your household or spend the money on new classroom supplies.
– Wait: Not seeing friends or family ’til after the holiday? Or shipping gifts to people who wouldn’t be offended by a late present? Shop the after-Christmas sales.
For the kids
Cutting back on gifts for the kids is undoubtedly the toughest part of having a thriftier holiday. But there is a chance to turn the holidays into a learning experience, and at the same time cut out the excess of the season.
Some strategies for buying for the kiddos:
– Focus on one big gift a child really wants. Cut out some of the little extra gifts that, often, are just there to put more bulk under the tree.
– Get your kids to create a list and prioritize what they’d like. And, make sure they know that they can’t get everything they want.
– Consider used toys or games. Video games especially offer an opportunity for buying used. Stores like EB Games and Game Stop even offer exchange programs where you can trade in old games.
– Get your entire family involved in a charitable cause this holiday season. It’s a great opportunity to teach your children compassion. Activities can range from cleaning out old toys and clothes to donate to charity to volunteering time at a soup kitchen.
– Focus your energy on spending quality time together, instead of shopping for carfuls of gifts. Look for free holiday events listed in your local paper. Enjoy special time together as a family.
Entertaining
What are the holidays without a party or a big family meal? But the cost of entertaining can be astronomical. A fancy cut of meat; fresh, organic vegetables; the right centerpiece; several bottles of high-end wine – it adds up quickly. But there are ways to cut back, without being a complete party pooper.
– Don’t be ashamed to take people up on their “What can I bring?” offer. An appetizer is always more welcome than a hostess gift that will get shoved to the back of your closet. So, when they ask, be ready with some simple requests – an appetizer, bread, a salad, wine, etc.
– Take the “What can I bring” plan to the next level and host a potluck instead. It’s a great way to get people involved, and taste lots of interesting dishes. One tip: Find out what people are bringing to avoid having five green bean casseroles and no desserts.
– Skip the expensive cut of meat. Give up on the standing rib roast. There are lots of tasty, cheaper options. Have a pasta party, or go with soup and sandwiches as a centerpiece.
– Have what Harvey Rosenberg calls an “art gallery party.” Serve finger foods or desserts only, plus cocktails (just like they do at gallery openings), but no main course. The key is having it a time when people are not expecting a meal. Harvey Rosenberg suggests mid-afternoon between 2 and 5:30 p.m. or post-dinner between 8 p.m. and midnight, and making it clear on invitations (“Join us for coffee and dessert,” for example).
Decorating
“Deck the halls with boughs of holly” may just be the best frugal decorating advice yet – especially if you cut those holly boughs from your own backyard! Here are some more tips to help you make your home a seasonal showplace without breaking the bank:
– Keep it simple. Use what you already have and supplement with fresh greens from your yard. Go for elegance, not excess. “Excess is out,” Harvey Rosenberg said.
– Decorate with flowers. Buy flowers from wholesalers or plants from big garden stores like Home Depot.
– Turn decorating into an event. Host a tree-trimming party for family and friends.
– Shop the dollar store. You’ll be amazed at what you can find. Even inexpensive children’s toys arranged in a glass bowl can be a festive centerpiece.
– Hang your presents. Take down your photos and wrap them up like gifts. Rehang them as holiday wall decorations.
– Utilize Christmas cards. Save those favorite cards and display them. Frame them, hang them on strips, put them under the glass of a table. Willhite, of www.allthingsfrugal.com, also suggests using old cards to make gift tags, postcards and tree ornaments.
– Ask for decor gifts. Put ornaments, candles or other holiday decor on your Christmas list. It’s amazing how quickly one or two items received a year will add up.
