The holidays are upon us. Christmas is less than two months away, and retailers are already decking the malls of boughs of holly.

1. Make a list of everyone you should give a gift to, including service people that you might need to acknowledge ((for example, if you live in New York City a Christmas bonus for the doorman and the superintendent is usually expected). Also note if you can get by with a thoughtful card – every Christmas I try to write a short card to most of my friends, but we don’t exchange presents, so in my holiday budgets I only include the amount of the card and postage (around $3-$5 per person).
2. Set a budget amount for each person. Maybe your husband gets a $100 budget, each of your two kids get $50, and you are sending your parents on a bed and breakfast weekend, so they are allocated $350. Add up the total – if that number looks reasonable to you, then you’re set. If not, you will have to cut from each person’s allotment. Stacking Pennies came up with a total budget of around $525 for her presents. She realizes that she usually goes over budget a bit, but is ready to increase her budget by a little if needs be.
3. Search for deals & go for quality over quantity – Thanksgiving’s Black Friday is coming up, that is always a good opportunity to score electronics. Most stores will be advertising Christmas sales this time of the year, so if you comparison shop, you can often get presents for cheaper. Etsy is also a website where you can find unique presents, although the prices vary. However, if you are set on a necklace from J.Crew, Etsy often offers similar jewelry for much less. Or, if you are crafty, you can make your presents.
4. Offer IOU [insert the service] as a gift – if gift-giving is about your time and feelings and not about cold hard spending, this can be the best (and most frugal) way of expressing it. Best for intimate family and friends, an IOU card can be for a night of babysitting (so that your brother can go on a date with his wife without the kids), a week of cooking (teenage daughter who wants to give her mother a break), or even a hug or a kiss. What matters is the thought behind these cards.
5. Recognize that it’s okay if you can’t spend as much as you’d like. The holidays are about spending time with the people you care about. Presents are nice – fine, I’ll be honest – presents are great, but they are not worth jeopardizing your financial foundation over. If you can’t afford to spend $200 on the hottest new gadgets for your children – that’s okay. If you can’t get your significant other that new pearl pendant or leather carryall, that’s okay too. If your financial circumstances have changed as a result of the economy, don’t feel the pressure to keep up with what you’ve done in the past. Last year, I sent my parents to a swanky hotel in Las Vegas for their Christmas present, but this year, having recently lost my job, I can’t afford to do that. That’s okay too. I will likely give them a nice card, and maybe a pair of movie tickets, and know that my gifts are appreciated, just the same.