5 Gifts Ideas for a Frugal Christmas on a Budget
Broke Christmas gift ideas: Check out 5 thoughtful, budget-friendly gifts you can give this holiday season without overspending.
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You can have a frugal Christmas if you carefully plan and shop around. Spending more doesn’t make you more loved, but spending wisely helps.
My husband and I both have divorced and remarried parents (our kids are lucky enough to have 7 grandparents). He has half-siblings, I have step-siblings.
We have nieces and nephews on both sides of the family. Buying gifts for all of those people can really add up, so we have always worked hard to find frugal Christmas gifts. That’s why I’ve put together this little guide, a frugal Christmas gifts guide, to help make your holiday shopping simpler and more affordable.
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1. Simplify your giving list
Pare down who you buy gifts for, but make sure to communicate with your families about the changes. Explain that this is coming from a place of financial security, not because you’ve become a miser or that you hate Christmas now. You can even share your financial goals if that’s comfortable, and maybe you’ll inspire someone else.
- buy for immediate family only
- buy for nieces/nephews/siblings/parents also
- buy for nieces/nephews and draw names for other adults
- draw names for one other family member
- buy for nieces/nephews and purchase one white elephant gift for another adult (the “rules” vary, but usually it’s a gift that you buy for anyone in the group, that can be traded, and is often a joke or something odd)
- share the cost of larger gifts for nieces/nephews with another aunt/uncle or grandparents
To easily draw names, I like DrawNames.com. You can even save your setup from year to year, so you’re not stuck purchasing for the same person two years in a row. It also lets you put restrictions on who people can draw (allowing me to do one draw with both my mom & stepmom, and not have to worry about that awkwardness), and it sends out reminder emails.
For my own kids, I love the idea of the 4 Gift Rule because it fits within my minimalist ideals, plus it’s a more frugal Christmas gift plan. Each child receives only 4 gifts: something they want, something they need, something to wear, and something to read.

2. Plan ahead & make a budget
For our immediate family, we buy 3–4 Christmas presents for each child, plus stocking stuffers for all four of us. My husband usually picks out a few extra little things he thinks the girls will love. It’s a great way for him to be involved and make Christmas morning even more exciting.
When it comes to us as a couple, we’ve found that choosing our own gifts works best. We typically pick something a bit more expensive—around $200—that we wouldn’t usually splurge on. This way, we get exactly what we want without any guessing. For example, my husband can pick out his favorite hunting gear, and I don’t have to spend time figuring out which brand of clothing to buy.
For our nieces and nephews, we stick to a $20 budget per child. We always check with their parents first to make sure we’re picking thoughtful gifts and avoid any “drum set” mishaps next year. A gift card or board game is often a great idea, especially for younger kids. These budget-friendly gifts make it easier to shop for large groups without overspending.
“For our nieces and nephews, we usually budget around $20 per kid. We also check with the parents first to make sure we’re picking something they’ll actually want—so we don’t end up with a drum set as a joke gift next year.
And when we draw names for our extended family, we usually agree on a spending limit of $50 or $100. This way, we can still buy everyone a meaningful gift without anyone feeling pressured to spend too much money.
Around November 1, I start brainstorming Christmas gift ideas for my girls, nieces, and nephews. I should probably write it down, but for now, I keep it all in my head. Planning ahead lets me shop around, check out holiday markets or local thrift stores, and find some great deals.
This approach has worked for us for years, helping us find thoughtful gifts while staying within our budget. Whether it’s smaller gifts, inexpensive gifts, or something from a local library sale, planning ahead keeps the season festive without overspending. The best part of Christmas morning is knowing our planning paid off, and everyone got a special gift they’ll enjoy.

3. Shop sales & look for cashback
Black Friday has turned into a massive event that now lasts for almost two weeks, which makes it easier to find great deals on holiday gifts. To stay ahead, I sign up for emails from my favorite stores so I can get notifications when there are sales. But sometimes, those emails can be a bit overwhelming, so I prefer to check out a few retailers I trust to see what’s on sale. A quick search online will also tell me what’s discounted both in stores and online.
I always check Rakuten for cashback deals. Once you’re signed up, it’s super easy to use the website or browser extension to find the store, brand, or item you’re after. You can earn cashback—sometimes up to 25%, though that’s not too common. And the best part? It doesn’t cost you anything extra. The retailers give Rakuten a percentage as part of their advertising.
For example, this year I bought Kiwi Co crates for my niece and three nephews. There was a sale, and I got cashback through Rakuten, which helped me give more than I originally planned, all while sticking to my budget. It’s a great way to give meaningful gifts without going overboard financially.

4. Making something is the ultimate frugal Christmas gift
Making something by hand isn’t just about saving money; it’s about giving something personal and meaningful. It’s the perfect way to stay on budget while still giving a gift that will be appreciated for years. And let’s be real, a gift card just doesn’t have the same impact as a thoughtful, homemade gift.
So if you have a skill, use it! My husband and I make a lot of food from our garden—things like homemade jams, jellies, and canned goods. These shelf-stable items are great for local recipients and can be put together for very little money. Last year, we gave some homemade strawberry jam in mason jars with personalized labels as gifts for family members. It was the perfect way to show thoughtfulness without spending too much.
You can also assemble cute dry-baked good mixes. It’s such an easy and fun project—just layer all the dry ingredients for a batch of cookies in a mason jar, tie on a ribbon, and print out a recipe card. It looks creative and thoughtful, and it doesn’t break the bank.
If you know how to sew, knit, or crochet, consider making small things like dish scrubbers or scarves. My husband’s grandma knitted us these little dish scrubber pads about 10 years ago for Christmas, and I still use them! They’re useful things that are incredibly thoughtful, and they last for a long time. She’s also gifted us beautiful afghans over the years, which are a unique gift that really takes time, care, and yarn. It’s amazing how something handmade can carry so much real value.
Other frugal handmade Christmas gifts include personalized photo frames that you can decorate with paint, stickers, or fabric to fit the recipient’s style. You can also make custom keychains using polymer clay, which is inexpensive and easy to shape into fun designs or initials.
For anyone who loves gardening, hand-painted flower pots filled with herbs or small plants are both charming and practical.
Then there are homemade flavored salts or oils, perfect for people who appreciate simple but amazing things, especially when packaged in cute little jars.

5. Give second-hand gifts
For a lot of people, second-hand gifts are the best gift they can get, especially when it’s something they wouldn’t typically splurge on themselves. Plus, they’re unique gifts that show you put thought into finding something special.
Whether it’s a book from a second-hand store, a video game you know they’ll love, or a high-quality pair of aggro skates they’ve been wanting for ages, buying used is a perfect way to share meaningful items without spending a fortune.
We’ve always been fans of browsing second-hand stores. It’s a great way to find unique gifts without breaking the bank. We’ve bought clothes for our kids when we find good deals, but we’ve also scored some amazing gifts. A couple of years ago, my nephew was totally obsessed with the solar system. We stumbled upon a huge, beautifully illustrated book on the topic at Goodwill for just $3, and it turned out to be the perfect gift for him. He loved it!
If you know someone who loves vintage clothing or expensive labels, thrift stores can be a great source. Also, check out sites like Poshmark and Thredup.
I have also re-gifted items I didn’t like or need. That sounds harsh, but I hate to waste perfectly good things. Obviously, you need to be careful who you re-gift to (i.e. not the original giver), but this can be done tastefully. Never give away dirty, worn out, or used items like candles or lotions.
Here are some frugal second-hand gift ideas to consider for the holiday season:
- Music records: For music lovers, vintage vinyl records or CDs can be a nostalgic and thoughtful gift.
- Sports equipment: Used skates, tennis rackets, or bikes in good condition can make a great gift for an outdoorsy friend or loved one.
- Jewelry: Vintage or second-hand jewelry can be both beautiful and meaningful, offering something unique that you can’t get in a regular store.
- Board games: A gently used board game can be a fun and budget-friendly gift, especially for family game nights.
- Home décor: Thrift stores often have unique pieces like picture frames, lamps, or vintage furniture that can make a great gift for someone redecorating or looking for one-of-a-kind items.

Bonus tip: plan for next year’s frugal Christmas
As you’re buying gifts this year, take a minute to save your receipts or keep track of your spending (which, let’s be honest, you should be doing anyway). Once you’ve got the numbers, take a look and ask yourself: Does this fit in your budget? Is it in line with your financial goals? Maybe you’ve already grabbed gift cards for your best friends or found some cute gift bags for young kids. But does your total spending really add up to what you had planned? Now’s a great time to see if your gift lists stayed on track or if you ended up spending more than you planned.
Use the insights you’ve learned this year to help plan for next Christmas. Once you’ve got a sense of how much you spent, set a budget for next year’s holiday season. Break it down by 12—this is how much you’ll need to save each month so you don’t end up charging everything to your credit card and going into debt.
Setting aside that amount each month will help you avoid stress during the holiday season. If the total feels too steep, it might be time to rethink your holiday spending so you can enjoy the season without the financial aftermath.
if you want to get a jump on next year, December 26th is the best time to shop for Christmas trees, decorations, and gifts. Everything’s on sale, so you can score great deals on everything from bubble bath to craft supplies for homemade gifts. Plus, keep an eye on social media for inspiration and specific items to add to your wish list.

How do you save money while still being generous?
The ideas above are great if you’re looking for budget-friendly Christmas gifts, but they’re not the only way to save money while still being generous.
DIY Home Décor
Upcycled furniture & decorations: Don’t throw out old furniture—give it new life instead! A little paint or fresh fabric can totally transform a piece, and you can find affordable items at thrift stores that just need a bit of TLC. Whether it’s an old chair or a tired-looking table, a simple makeover can make it feel brand new. Plus, upcycling is a great way to add something unique to your home without breaking the bank.
Personalized mugs or picture frames: You don’t need to spend a ton of money to make a gift feel personal. Grab some plain mugs or photo frames and use paint markers or ceramic paints to create a custom design. Add a favorite quote, draw something special, or just doodle a fun design. It’s a thoughtful way to give a gift that feels extra meaningful without the high price tag.
Magazine art: Got a stack of old magazines? Turn them into cool, unique art! Cut out interesting images, patterns, or words and create a collage or framed piece. You can make a personalized gift by choosing images or quotes that remind you of the person you’re giving it to. It’s a fun, creative way to make something totally original, and best of all, it’s free!

Homemade recipe books: A taste of family tradition
A homemade recipe book is a great option. Recipes aren’t just about cooking; they hold family memories and traditions. So, why not gather up some of your favorites and create a little booklet with a personal touch?
Family recipes: If you’ve got any classic family recipes that have been passed down, this is the perfect opportunity to share them. You can write them out by hand or print them and put them in a small booklet. Add a little story or note about each recipe to make it even more personal. It costs almost nothing but feels really thoughtful, and the person who gets it will love having a piece of your family’s history to keep.
Baked goods: And let’s be honest, who doesn’t love homemade treats? Whether it’s banana bread, cookies, or whatever you like to bake, homemade goodies are always a hit. They’re simple to make and won’t cost you much. Wrap them up in a cute tin or box, and you’ve got a sweet, thoughtful gift. Plus, they’re the kind of gift that gets eaten up quickly, so it’s a win-win.
These ideas are perfect for a Christmas on a budget. They’re personal, meaningful, and don’t cost a lot of money. Whether you’re sharing a family recipe or homemade treats, you’re showing you care without spending a ton. Just keep in mind, these gifts are best given to close family or friends, not coworkers.

Care packages
Care packages are a great way to show you care without spending a small fortune. You can get creative and make them personal to the person you’re gifting, and they’ll still feel special. Here are some thoughtful and budget-friendly ideas you could give a chance this Xmas:
Cold weather kit: With winter fully here, a cozy cold weather kit makes for the perfect gift. Grab a pair of mittens, some comfy socks, and maybe a few packets of gourmet hot cocoa or even a small jar of homemade mix. If you want to go the extra mile, add a cute scarf or a mug. It’s a simple, thoughtful bundle that’ll keep the person warm and cozy, and the best part? It won’t cost you much at all.
Stress relief kit: The holidays can be stressful, so why not give the gift of relaxation? Put together a little kit with things like calming tea, a stress ball, or a journal. It’s a cheap but useful gift that says, “Take it easy and take care of yourself.” For an added touch, consider throwing in a homemade bath bomb or a small candle.
Movie night package: Instead of a gift card, put together a movie night kit with popcorn, candy, and maybe a Netflix or Amazon Prime gift card. You could also offer to watch the movie together, making it a fun, affordable experience.

Plants & Gardening Gifts
Plants make awesome, affordable gifts. A small potted plant, like a succulent or herb, is a great pick. These are super easy to take care of, so even if your gift recipient isn’t exactly a gardening pro, they can still keep it alive. Kick your creativity into gear by planting it in something fun, like a teacup or mason jar.
Another idea? Seed packets. If you have a garden, why not share some of your homegrown seeds? You can wrap them up in cute little envelopes and add a simple note with planting instructions. It’s an inexpensive, thoughtful gift that keeps giving, especially when those herbs or flowers start to grow. Plus, it’s a great way to give someone the chance to try gardening without spending much.

Tech-free Gifts
Sometimes, the best gifts don’t need a screen. A puzzle night is one of those perfect, simple ideas. Grab a fun puzzle, whether it’s a classic jigsaw, a mystery puzzle, or even one of those escape room-style ones, and make a night out of it. Put on some music, snack on your favorite treats, and enjoy hanging out without the tech distractions. It’s a great way to bond, and you can create some fun memories in the process.
Another awesome, low-cost tech-free idea is handwritten letters. Don’t worry about fancy handwriting, just write from the heart. You can share some fun memories, let them know how much they mean to you, or send some words of encouragement. It’s way more meaningful than any store-bought card and will really show them how much you care.
If you’re into music, putting together a custom playlist can be a super thoughtful gift. Just pick songs that remind you of them or that match their vibe. It’s a simple way to share something personal, and every time they listen, they’ll think of you. It costs nothing but gives them something they can enjoy again and again!

DIY Beauty Products
Lip scrubs: Skip the store-bought stuff and make a simple, soothing lip scrub with sugar, coconut oil, and honey. Not only is it easy to whip up, but it also shows you put thought into the gift. Pack it in a cute jar and it’s a treat they’ll reach for time and time again.
Soap: If you’re feeling crafty, homemade soap is a game changer. Using essential oils or herbs, you can create something that smells amazing and looks cool, too. It’s like giving someone a little piece of luxury wrapped up in something you made with your own hands.
Bath bombs or face masks: These DIY beauty products are like gifting a mini spa experience. Bath bombs fizz away the stress, and homemade face masks give a little pampering. You can find tons of recipes that make them easy and affordable to make, and they’ll feel like a special treat in the middle of their routine.

Handmade Christmas Decorations
Handmade Christmas decorations add a personal touch to your holiday gifts or decor. They’re meaningful and often become keepsakes. Here are some simple, creative ideas:
Homemade ornaments: Making ornaments with materials like felt, clay, or paper is a fun, easy project. You can sew felt into cute shapes like stars or trees, or make clay ornaments that you bake and paint. Paper ornaments, like snowflakes or layered designs, are simple but really pretty. Every year, when they hang them up, they’ll think of you and the time you spent making them.
Pinecone decor: Gather pinecones and turn them into rustic table centerpieces or wreaths. Keep them natural for a rustic look, or paint them in festive colors. Add some glitter or fake snow for extra sparkle. You can even tie ribbons around them for a finishing touch. They make great additions to mantels or as part of a cozy holiday display.
Upcycled Cards: Instead of tossing old Christmas cards, reuse them! Cut out pictures or messages to create new gift tags or greeting cards. Add a ribbon or some stamps, and you’ve got a unique, homemade gift tag. It’s a great way to recycle, save money, and make your gifts feel extra special.

Budget-friendly subscriptions
If you’re on a tight budget but still want to give a thoughtful and useful gift, consider a budget-friendly subscription. It can provide ongoing enjoyment and value for the recipient without you having to overspend.
Free online classes: A subscription to an online class is a great way to give someone the opportunity to learn something new. Platforms like Coursera, Udemy, and Skillshare offer a variety of free courses on everything from photography and cooking to personal development and business skills.
You can even find niche courses like knitting, coding, graphic design, and much more besides. For example, if someone loves cooking, you could gift them a free culinary course, or if they’re into photography, there are great beginner courses that cover everything from camera basics to photo editing.
Digital magazine subscriptions: Many popular magazines now offer affordable digital subscriptions, and they’re often a fraction of the cost of the print version. Whether the person you’re gifting is into fashion, fitness, cooking, or technology, there’s something for everyone.
Sites like Kindle, Zinio, or Apple News+ offer digital magazine subscriptions at a fraction of the cost of print versions. If they’re into current events, a digital subscription to The New Yorker or Time could be a great gift. For someone who loves fitness, magazines like Shape or Men’s Health might be right up their alley. It’s an affordable way to keep them entertained and informed all year long.

Homemade drinks
These simple yet impressive ideas are not only budget-friendly but also feel extra special:
Hot cocoa mix: Instead of buying a pre-made mix, why not make your own? Just mix together cocoa powder, sugar, and powdered milk (you can even use coconut milk powder if you want a dairy-free version). Also, you could toss in some cinnamon, vanilla, or crushed peppermint for a little extra flavor.
Pack it up in a cute jar or mason jar, tie it with a ribbon, and you’ve got a cozy, homemade gift. Add a note that says something like, “Just add water or milk for a cup of warmth,” and you’ve got a thoughtful and inexpensive present that the recipient will appreciate on a cold winter day.
Infused water kit: If you’re looking for something a little healthier, an infused water kit is the best bet. Grab a reusable water bottle or mason jar, then fill it with fruits, herbs, or spices like lemon, cucumber, mint, or berries. You could even write out some recipe ideas like, “Lemon and mint for a refreshing twist” or “Strawberry and basil for something unique.” It’s a great way to encourage healthy hydration, and the best part is, the person will keep using it long after the holidays.

Frugal Xmas Gifts for kids (cheap & fun ideas)
For kids, there are plenty of cheap and fun gift ideas that are creative and engaging. These gifts show you care while keeping things budget-friendly:
Handmade toys: Making toys from scratch can be a lot of fun and a perfect way to show love and effort. You could create sock puppets, make wooden cars with a little sanding and paint, or stitch felt animals together. These kinds of DIY projects are unique, and every little one will appreciate the time and thought you put into their gift.
DIY sensory Kit: Sensory kits are fantastic for sparking creativity and improving fine motor skills. You can easily put together a sensory play kit with things like homemade playdough, textured toys (think soft fabrics or squishy stress balls), and even colorful fabric swatches or ribbons. It’s a gift that’s not only fun but also educational and practical, helping kids learn through play.
Paper craft kit: If the kid you’re gifting loves arts and crafts, a paper craft kit is a great choice. Gather some fun patterned paper, glue, scissors, and even add a few colorful markers. You could also include instructions for fun origami designs or simple paper crafts to get them started. It’s an easy way to keep kids entertained while allowing them to use their imagination. Plus, you can even join in and make things together.

I love this. Most tips online about saving money around the holidays seem so cheap to me, but your tips are really focused on being affordable AND generous, so thank you!
Thank you so much! That is exactly the sentiment I was going for!
Great tips! I’m a huge fan of making your own gifts for Christmas. It’s frugal and personalized, plus usually pretty thoughtful!
I love receiving handmade gifts!
One thing I did this year was start shopping early so I spaced my expenses out which has been really helpful. I’m hoping to simplify our giving list next year. Thanks for sharing your tips!
That’s a great idea! I tend to forget where I hide gifts if I buy too early, but my plan for next year is to make a list with locations
This is a fantastic list of frugal gifts. I agree that it’s important to plan Christmas on a budget, otherwise it can get very expensive.
Exactly! It’s so easy to get carried away with out a plan.