Gifting on a budget: 5 secrets to being generous without going broke

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Thoughtful gifts for friends and family are a Christmas tradition, showing loved ones that you’re thinking of them this holiday season. But a long shopping list can be pricey. If you are concerned about the cost of Christmas presents this year, these ideas will help you get gifts for everyone on your list on a budget.

A Santa Claus hand holding a white piggy bank against a blue background with bokeh lights.
The holiday season can be expensive, but these ideas let you get gifts for everyone on your list on a budget.  Photo credit: Depositphotos.

Christmas is a time to gather with loved ones, enjoy good food and experience holiday traditions, but gift giving is also a central part of the season. Gifts for family and friends are standard in many families, but your Christmas gift list might also include in-laws, coworkers, neighbors, children’s teachers, delivery people and more.

Investopedia estimates that holiday retail spending, including gifts, will be at least $980 billion in 2024, setting a new record. With expanding gift lists and recent inflation, the amount of money expected to be spent on Christmas presents can put pressure on your budget.

A little creative thinking can help you finish your holiday shopping list without breaking the bank. While food gifts are ideal for a DIY gift, there are a variety of other ways to give low-cost gifts that are anything but cheap. From gifts of service to tasteful regifting, use these five tips for affordable gifts as inspiration for this year’s Christmas presents.

Celebrate friends and family with a potluck

Amid the season’s gift giving, it is worth remembering that time with loved ones can be more meaningful than material presents. Good food, too, is a highlight of the season. Instead of buying gifts, host a potluck instead. Everyone will enjoy spending time together. By having guests supply the food, you’ll face minimal costs yourself.

Whether hosting or attending a potluck this year, low-cost and delicious dishes like a penne pasta bake can feed an entire party. Other dishes like casseroles and crock pot recipes are sure to please a crowd.

Snacks are a must-have at any potluck as well. Dips with chips, crackers, bread or vegetables are often simple. For a budget snack, use up leftover hummus in your fridge to make hummus deviled eggs.

If you still want to have a gift exchange as part of a potluck, try a Secret Santa or a White Elephant. Everyone will bring one gift and leave with one gift, limiting the amount of presents people have to purchase. You can add a cost limit to your gift exchange or a theme such as regifted items or items from a thrift store. However you choose to organize gifts, a Secret Santa or White Elephant is sure to be entertaining.

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DIY Christmas presents with homemade gifts

Making your own gifts can be both cost-effective and thoughtful. The time and personalization you put into a homemade gift can make it more meaningful than a store-bought gift.

Many crafting hobbies can create beautiful gifts. Crocheting, knitting, sewing, painting, embroidery, macrame, bookbinding — whatever you are good at, plan a project around your recipient’s tastes and needs. This can mean making something you know they need or using their favorite colors and textures.

Food also makes for a great DIY gift that anyone can give and almost everyone will like to receive. The secret with food gifts is presentation. Spend a bit of money and time on pretty jars, ribbons, baskets or seasonal dishware. With a festive presentation, almost any food is worthy of a place beneath the Christmas tree.

Baked goods work well for food gifts. Spiced walnuts are easy to make in batches if you want to give jars to several people. Infused oils, spice blends, jams, vanilla extract and hot cocoa mix are all straightforward to prepare and have a long shelf life so that your recipient can use them in the new year. If you want to give a more interactive gift, put together cookie kits or cocktail kits.

Give the gift of time with a gift of service

Material goods are fun to unwrap, but performing a service for someone can be even more meaningful. Especially in the busy holiday season, taking a task off of someone’s plate is a great way to show your love and appreciation. Yard work, shoveling snow, house cleaning or repair work all require just a bit of time on your part.

To put something under the tree for a service gift, write the task you plan to do on a card. You can also draw up or download a template for coupons.

The do’s and don’ts of regifting

Regifting — giving away a gift you received to someone else — is somewhat of a fraught topic. On the one hand, gifting something that you won’t use to another person who will actually like it is cost-effective and better than throwing it away. But you’ll want to be careful to avoid any faux pas when regifting.

Most importantly, remember who gave you the gift you are planning to regift. You do not want to give the present back to the person who gave it to you. Make sure you remove any tags or indicators that you are regifting the item. It’s also best to avoid giving away handmade items as those tend to be more personal.

As with any gift, be thoughtful when regifting. Use regifting to pass on a present to someone who will love it rather than simply as a cheap or last-minute gift solution.

Plan experiences with loved ones

Spending time with friends and family can be as much of a gift as physical items. Time together also provides lasting memories. For budget experiences, plan a hike or camping trip, buy tickets to a community theater production, take a class together or head out for a round of laser tag or mini golf. Choose an activity that your recipient likes to do for a thoughtful present, then wrap tickets, a brochure or a map if you need a physical gift.

Save money without sacrificing gifts this Christmas

Celebrating Christmas on a budget does not have to mean cutting down on gifts. In fact, focusing on homemade gifts, gifts of service and time together can make your holiday presents more personal. From sharing a favorite recipe to taking some time out of your busy schedule for others, make this year’s Christmas gifts extra memorable with affordable gifting ideas.

Sharon Rhodes is the creative force behind the food blog The Honour System. Passionate about all things homemade, Sharon is a seasoned recipe curator focused on making healthier cooking and baking accessible to all.

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