Retailers, friends and family make a very good team when it comes to trying to destroy our budgets around the holidays. The message that we get from TV, magazines, co-workers and neighbors backs them up too. Over and over again, we are browbeat with the ideas that no cost is too high for the holidays and that the more we spend on somebody, the more we love them.

Like you, many people have realized that it isn’t necessary to spend a lot to come up with meaningful gifts that tell the recipient how you feel about them. In an effort to help you think creatively and give you a chance to come up with the right gift for friends and family, here are 5 ways to save on gifts without being cheap about it.

  1. Consolidate gifts. When giving to multiple members of the same household, it becomes easier to give a family gift. Rather than spending $10 or $20 per person on 6 uninspired gifts, make it a single $30-$40 gift instead. The gift will be nicer and better remembered, while you will wind up saving money.
  2. Make a gift. This is not the macaroni and cotton ball craft project your mom lovingly accepted from you after school one day. Use your lifetime of learning to create something for somebody. If you are an amateur photographer, a mosaic of photos or a good sized enlargement may be a good choice. As a scrapbooker, memorialize something special about your friendship with somebody. The key here is that you are already using tools and materials you have on hand for your hobby. Plus, the gift will be truly unique and from the heart.
  3. Agree not to give gifts. Do not be a Scrooge with this one. Talk to friends you have exchanged gifts with in the past. Point out that the friendship does not need those gifts. Instead, do something with those friends for a fraction of the cost. Meet them for dinner and split the bill during the holidays. Join them on a local sleigh ride. Whatever the activity is, make it about time with friends instead of gifts for friends.
  4. Give to charity. Choose a charity and make a donation in the person’s name. Make certain they get a card explaining about the charity, why you chose it and what the donation is going to do. You can even get the other person involved in choosing the charity. This is especially good for dealing with people who have everything already.
  5. Perform a Service. In our busy lives, there are always tasks that go undone because they are not urgent enough or important enough to keep up with. In other cases, it is too easy to let something go because it is unobtrusive and undemanding. For a highly appreciated gift, do something about it. For a family with young kids whose parents do not get time for themselves, movie tickets and babysitting may be a godsend. For an elderly friend, maintenance around the house may be even better. For a lonely single, including them in a holiday activity will tell them how much you care.

These gifts are better than cheap knick-knacks and can cost much less than a hectic day at the mall. They do require more thought, and may require more time. The personal nature of these gifts far outweighs these drawbacks, because what is more valuable to us in the long run than honest time and appreciation for the friends and family that make life worth living?