How to Save Money at Christmas

It is so important to save money at Christmas and during the rest of the holiday season for those in debt finding any thoughts, ideas, or means to do so is vital to your future financial health.

The amount of money one spends at Christmas depends on a number of things. If you’ve got a large family and participate in the office Secret Santa, you can end up spending a fortune. There are the three main areas of holiday spending; they are gifts, food and decorations. These are also the three areas where you can save a bundle with some prudent planning.

Holiday Gift Savings

Christmas is an advertiser's dream holiday, where the idea of buying people presents to show your love and affection for them has become an excuse to make people feel obligated to spend hundreds of dollars that they don't have to spend.

To save money at Christmas, follow these tips for gift ideas:

• Set a price limit—This works especially well with friends, work colleagues and extended family. They will all want to save money at Christmas, so be the person to suggest putting a cap on how much each present should cost. Make sure that the amount that you suggest is an amount that you can afford to spend on each person.
• Offer your time—In a world where we spend more and more time running from place to place, giving someone a gift of your time to go out shopping, to the movies or a weekend fishing trip will mean more than just a present. It will be important that the experience is one that you both will enjoy.
• Try doing it at home—Home-made gifts, when done right, are often the best kind, as not only do they look good but they also represent a large investment in time and energy on your part. Think of what kinds of craft activities you're good at and get your gift ideas from there.

When people open their Christmas presents, their first thought will always be that they like being thought of, and that someone has taken the time to pick something appropriate for them. The amount you spend on a gift doesn’t matter, so giving less expensive gifts is a great way to save money at Christmas.

Holiday Food Savings

Depending on the size of your gathering for Christmas day and what you choose to eat, you could end up spending hundreds of dollars feeding people a meal that they wouldn't normally sit down to eat. Just a turkey big enough to feed 12 people can cost upwards of $50.

Try these tactics when discussing the catering arrangements for the day:

• Split the cost—For large get-togethers, it seems unfair that one family is responsible for buying and cooking all of the food. At the same time, it can seem out of the holiday spirit to ask for money, but to save money at Christmas, be brave and ask your family if they would like to pay for their share of the meal well ahead of the holiday.
• Go pot luck—If splitting the cost makes you feel uneasy, another way to reduce the food bill is to move away from the traditional roast dinner and ask each person to bring their favorite dish. Make sure that you organize people so you have a good balance of sweet and savory dishes.
• Go out for dinner—By choosing a good local restaurant to go to, you not only ensure that each person will pay their own way, but you remove the hassle of shopping, cooking and cleaning.

Don't be afraid to put these ideas to your family, as they will be trying to save some money themselves around the holiday period and will appreciate your efforts.

Holiday Season Decorations

It can be easy to spend a small fortune on decorations for your house over Christmas but with a bit of thought, you can save with a more modest outlook. One of the biggest costs is lighting the house, not only in buying the cables and rope lights, but also in the increase in your energy bills. Why do lights? In most cases it's a matter of competition between neighbors, to see who can out do the others. Forget outside lights.

When you buy your tree, think about going artificial. It might cost you more in the first year, but you'll save the cost of purchasing a new tree with each holiday period to come.

Thinking of ways to save money at Christmas shouldn't be hard but it will take a few small changes and a bit of bravery on your part to reduce the cost of the holidays. Everyone will be feeling the financial squeeze, so be the person to say it out loud.

Remember, when it comes down to it, Christmas and the holidays are about family and friends. Spending time with loved ones, sharing a bite and enjoying good times and laughter will create memories that no amount of gifts, food and decorations can ever create.