Holiday Shopping on a Budget: Ho, Ho, Whoa! Christmas in Tight Times

You don't need to spend a bundle to have a good holiday. At the risk of sounding impossibly corny, remember that in "A Christmas Carol," the Cratchit family had no gifts at all. A puny goose, a punier pudding and the entire family around the table made everyone happy.

Riiight. Put the Kinect under the tree and nobody gets hurt.

Apparently we're spending again, but very cautiously: Research from the National Retail Federation indicates shoppers will spend slightly less this year than for the 2010 holidays.

Are you one of those shoppers? Maybe money is tight right now, or you're afraid it will be tight later. Those are good reasons to be careful. But it doesn't mean slamming the door on holiday cheer.

Some people choose to limit gift-giving to immediate family only, or to children under 18 in the extended family. Others draw names rather than shopping for every shirt-tail cousin, and/or set price limits on how much can be spent.

Family members and friends may actually be grateful to you for the suggestion. This is especially true of recent grads who have a lot of student debt, or young families finding it tough to make ends meet. They really can't afford to overdo it.

Obviously you'll get a lot more bang for your buck if you watch Savings.com for great deals. You probably won't even have to pay for shipping.

Many thrifty types started shopping at last year's post-holiday clearance sales. Others (like me) bought a number of gifts at yard sales and thrift stores. Some are cashing in rewards points to get gift cards.

You could also choose a cash-only holiday, to avoid those heart-stopping January credit card statements. This doesn't mean you can shop only in person, incidentally. It means you won't buy anything you can't pay for in full when the bill is due. Thus you can still use Savings.com deals or specials offered on DealPro sites.

Hint: One way to boost cash reserves is to save coins all year long. Every so often empty that mayonnaise jar, wrap the coins and deposit them in your bank or credit union, preferably in a sub-account called "Holidays 2012." Or start a "dollar bill challenge" -- Take the singles out of your wallet every night (or as often as you can) and bank them. Those George Washingtons do add up.

Those of you with kids might be reluctant to scale down, especially if previous years' holidays have been opulent. I'm afraid the best advice for you is, "Get over it." If you're in financial trouble, going deeper into debt is not the answer. Besides, little kids might not even notice that you've scaled down the gift-giving.

Older children should be let in on a dirty little family secret: Money does not grow on trees. In fact, consider bringing them into the equation. We will be OK because we are being careful with our money. Do you kids have any ideas for how we can make this holiday special?

It's possible that your children may shriek that their friends are getting ski trips and game systems and brand-new cars for Christmas. But it's also possible that they will come up with some creative plans for making merry.

If you need to trim expenses to stay afloat, then for heaven's sake trim them. Don't let others make you feel Scrooge-y. Simply explain that things are a little tight this year, and use some of the suggestions above to provide gifts to the people you love.

If you have the wherewithal to give, then do it joyously -- and thoughtfully. Folks who are having a tough time financially might appreciate presents that save them money, such as a gift card where the recipient usually shops (especially a grocery store). Or they might appreciate small luxuries they can't afford, like theater tickets or a gift certificate to a nice restaurant.

I don't believe it's my job, or yours, to overspend in order to prop up the economy. That said, I urge everyone who normally celebrates the December holidays not to skip it this year.

Scale down, sure. Get creative, definitely. But don't forgo a ritual that has the potential to make you really happy if you do it right.