With the economy tanking, job losses at a 14 year high, houses being repossessed at an alarming rate and prices skyrocketing, some of us may be dreading Christmas this year.

Don’t despair, just change your attitude towards spending and enjoy yourself. It’s the Season of Goodwill after all and it really is the thought that counts.
On average Americans spend around $800 on Christmas gifts, and a lot of it ends up on credit cards. Do we honestly need to fork out this much dough to celebrate one day?
There are plenty of ways to cut corners where gift giving is concerned, without compromising quality.

Think carefully about the people on your list. What do they really like and need? What would they appreciate? Don’t waste money and fret over gift-giving, just follow the tips below and you’ll find spending less can be fun and creative. Make it a challenge. Set yourself a firm limit for family, friends and colleagues and keep to it. Then you can enjoy the Holidays guilt free and you’ll love yourself come January when you open that credit card bill!

Make Your Own Gifts

Do you remember the excitement and pride you felt making gifts at school for your parents? Wasn’t it fun to create something for someone?

What are you good at now? Can you knit, sew, cook, bake, draw, take a good photo? Think about some of your talents and get to work. People are genuinely touched when they receive a special, hand-made, personalized gift. Wouldn’t you be pleased knowing someone spent time and energy making you something unique instead of grabbing some mass produced item off the shelf?

Cooking – this one’s great, especially if you can bake cakes, cookies and fancy confectionery. Who doesn’t love a sweet treat at Christmas? Bake cakes for neighbors, friends and family and decorate them Christmas style. You can go to town on presentation and display. If you’ve made decadent delights such as chocolate truffles or peanut butter balls, place them in a box or basket lined with colorful tissue paper or fabric and arrange sprigs of plastic holly or bright colored baubles around them. You can purchase these items at a craft store or the Dollar Store for very little.

Sewing – handy with a needle and thread? Then get to work! And don’t tell me you have no time – you can sew as you watch TV! There are a myriad of items you can make. Get a cross stitch or needle point kit and then frame the finished product for a family member. Embroider gold or red initials on a set of plain towels; you can get nice ones for a low price if you shop around. Make special festive place mats and matching napkins, a table cloth, a pot holder, a tote bag…anything you can think of that has practical and/or artistic value.

Knitting – not sure what’s in fashion? Take a trip to the mall and see what’s on offer, sweaters, hats, scarves, gloves. Check out the styles and colors and then go home and make your own for a fraction of the price!

Drawing – can you draw or paint? One year I drew a picture and framed it for my husband. When he opened it and saw my initials at the bottom I could tell he was touched. It was also a hit with everyone in the room; they all said, “You drew this?”’ That was a great Christmas gift in itself!

Make your own jewelry – anyone can make bracelets, necklaces, pendants, earrings – again craft stores have all the items you’ll need to create a unique gift. Girls of every age will appreciate it!

Make a CD compilation – have lots of music at hand? Create a compilation of old favorites for a friend. Make a special label with their name and picture on it. If you don’t have the software ask around – someone is sure to have a CD/DVD label making kit handy! Cheap, easy and again lots of fun!

Can you write? – create a poem for someone special, use a calligraphy pen and write it out all fancy on some thick white paper, then frame it.

Don’t forget to sign your work - make sure when you create a gift to either sign it (as in a drawing) or leave a card that says hand-made by … with your name on it.

Make jams, chutneys, relish, homemade wines – the possibilities are endless. If you have no talents in any of these areas then get thee to a library! None of it is rocket science (although to me knitting may as well be) there is something we can all master.

Re-Gifting

We all receive unwanted gifts, usable items that we simply do not like. It’s perfectly okay to pass these on to someone else. Just make sure that someone is not acquainted with the original gift giver! If it’s in good condition, or even better, still in its original packaging, look over your list and see who could use it and who would appreciate it. Go on, it’s okay; you don’t have to tell a soul!

When To Buy Used

Books make great gifts, even if they’re used. As a kid I’d get piles of paperbacks each Christmas morning and I loved them all. I didn’t even know some of them were second hand. Don’t feel guilty if you find a used book in pristine condition and give it as a gift. Bookworms won’t mind or even notice!
Does your child want a bike but you can’t afford a new one? Buy second hand as long as it’s in good condition. This can apply to almost anything. Garage sales, flea markets, consignment stores - are all great places to pick up bargains. Sometimes you’ll find unopened toys and you’ll save lots of money. Or alternatively go online and see what’s on offer.

Hand Me Downs

I had a doll house, buggy, baby’s crib, etc. that were all hand-me-downs from cousins. Did I know? No! Would I have cared? Hell no! Pass it on! Little kids are not judgmental.

Gift Wrapping

I went to town one year and dazzled everyone with my wrapping skills! It was fun and easy. Trot off to the library and find a book on it and get cracking! A simple yet effective look can be achieved with plain green or red paper tied with a piece of wide, bright ribbon. Add a sprig of holly, baubles, little bells or a pine cone to the bow and you’ve got yourself a classy, timeless look. You don’t have to spend a lot. Dollar Stores are great for wrapping paper, gift bags, tags and tape.

To get some great ideas and inspiration spend some time at your local craft store browsing around the aisles. It’s amazing what you’ll come up with. Libraries are also great so check out the arts and crafts sections.

The time you spend stressed out waiting in line, sitting in traffic or trudging round the mall, could be better used at home creating meaningful gifts. Quality is becoming hard to find in our society, and people are starting to appreciate homemade goods more than ever. So what are you waiting for? Christmas is a time for family and friends and is meant to be enjoyed. So go ahead and have a good time and get creative!

Alison Hill is a featured writer for Xomba.com. Read the rest of her work here .