Even though the economists tell us that the recession is officially over, our bank accounts may be telling us something very different.  And even if our financial situations are stable, the past few years should have taught us the importance of living within our means and saving money.  Added to that are the moral implications of continued consumption when so many do without and the practical question of where to put everything.

Given all this, it's no wonder that so many people are looking for ways to reduce spending on Christmas gifts this year.  You may be surprised to know that I am all in favor of agreements to limit gift expenditures while still keeping the fun. 

Here are some ways you can save money on gifts and still keep the gift spirit:

• For small groups of people (such as an immediate family), set a per person limit on gift expenditures.  For example, no one can spend more than $50 or $75 or $100 on gifts for any other person.  You can set the limit based on your personal situation. For larger groups, this can be impractical.  Setting a reasonable limit means that everyone gets a lot of very inexpensive gifts that they may or may not like.
• Larger groups may want to draw names. In such cases, it's very important to have clear guidelines for minimum and maximum spending on gifts.  It's very uncomfortable when one person in a group receives an extravagant gift when the others don't.
• A group of friends or a family may want to eschew gifts all together and just pool money to share an experience.  Buy play tickets, go whitewater rafting, take a trip, have a spa day.  The key is that you do something everyone enjoys and that you do it together.
• You may also want to ask people on your gift list if they want to continue exchanging gifts.  For many people, the true gift would be feeling comfortable in scratching a name off the list.  Be brave.  Raise the question.  You may be pleasantly surprised by the result.

Have you decided to limit yuor gift-giving this year?  What method will you use?

15 minute check-in:  Tonight, I'll finish inventorying the clothes I'm donating.