First, I decide how much I can afford to spend on all of my presents. Then, I cut back on my "extras" for November and December to help pad that amount.

Generally I set a limit for each person. I try to keep it flexible. For example, I know that I can spend less money on my Dad by getting him a couple of books he'll appreciate, but a little more on my sister, because she's hard to buy for. If it's too expensive, I shift to plan B or I talk to friends or family to pitch in if they haven't purchased anything yet.

This year I set a money limit for each group: friends, family, etc., and have been doing my shopping online, and modifying the items in my shopping cart according to those constraints. I found it works better than setting a price range for each person's gift separately.

Generally, I set a limit and try to meet or beat my spending estimates by shopping online and making inexpensive (but meaningful)creative gifts myself.

I pride myself in putting a lot of thought into each gift I buy every year - so it's very personal.

Past gifts have ranged from anything from an antique compass for a friend to a screaming rubber chicken for my dad.

True, I take overall cost into account. But for me it's the emotional value (and occasional comedic factor) of each gift that matters more to me.

I try to buy only gifts that I know will be meaningful. If I'm just buying a present for someone for the sake of giving them a present, then I don't buy anything. I also make a lot of my gifts to save money.
My family has started doing a lot more name drawing as well, which saves a lot of money.

My husband and I set a limit for each group (parents, siblings, nieces/nephews....) based on what we have saved all year in our Christmas club account. Like last year we had $600, so we did $50 per parent and $20 per sibling and so on. I think that putting $50/paycheck into the Christmas club account makes the holidays a lot less stressful because I know we will have the money.

Hi Erika. Christmas accounts are so awesome. The money just goes away, and then at Christmas, you suddenly have all this free money to buy gifts with. And you don't have to worry about the credit card bill come January. So cool.

I have an account that I have set up that I like to call my "Celebration Account". I have a portion of my paycheck that is direct deposited into it each pay period. The great thing about it is that I can not only use it for the holidays, but for birthdays and special occasions without any fees for withdrawing early. Anyways, I usually have a set amount that I like to spend on each friend or family member during the holidays and I love making home/handmade items to give as gifts as well...usually baked goods! That helps to reduce expenses too and it's more personal.

Hi Joanna. A celebration account is perfect! Then you've got all your bases covered no matter what time of year you need the money. Kudos on the great idea!