5 ways to find great Christmas gifts on a budget

Whether or not cash is tight this holiday season, here are a few ways to cut the Christmas gift budget and still have a great time.

It's still possible to make sure that everyone has a good time while sticking to a budget this Christmas. With children often overwhelmed by the volume of gifts and people trying to keep up with the latest consumer trends, maybe it is time to look at things a little differently.

One of the most important things to do when considering downsizing the Christmas gift list is to talk to family and friends who will be affected. Explaining that things will be different this year and what the plan is may yield some helpful suggestions.

An easy way to limit spending is to set a fixed amount for every gift. Even if this is set quite low, people can still have fun trying to find items without having to splurge on high-end luxuries. Shopping at thrift shops can be a great way to find unusual but inexpensive gifts. Finding out what unexpected items people were able to find can make opening Christmas gifts even more fun.

Another way of cutting back spending is to limit the number of gifts received. Try giving each person the name of one other person to buy a gift for. One gift makes Christmas shopping much more manageable, particularly in a large family or group of friends.

Another way of keeping costs down is to make gifts by hand. This is particularly good for children, as they can help with homemade sweets and crafting projects. Small photo albums filled with family shots taken during the year are very personal and will make a memorable gift for relatives. Even a knitted scarf is thoughtful — and particularly useful around Christmas time — and can be made to suit anyone's favourite colours.

As an alternative to exchanging gifts, families, couples or friends can consider organizing a round of charitable giving to various organizations. This can limit the overall spending and leave everyone knowing that they've supported a good cause. It can be a particularly good fit when the group exchanging gifts is composed entirely of adults.