Save Like Scrooge as Holidays Approach

By Peter McDougall

The struggling economy is making it harder for consumers to get into the holiday spirit.

Families are looking to cut back spending this season, and consumer confidence, although up slightly in November, is still near historic lows. But how can you save money without skipping on giving gifts entirely?

Here are a few tips to save like Scrooge yet still give out some holiday cheer.

Have a family chat

If you haven't already, consider having a discussion about family finances. In particular, talk to your kids about how and why things need to be a little different this year. You may be surprised at how much they know about ongoing financial problems, and how willing they are to help out. The conversation doesn't have to get into depressing details. Consider treating it like a learning opportunity about personal finances, such as setting a budget or establishing savings goals.

Also consider discussing a change in gift-giving this year. A secret Santa or Yankee swap approach, for example, can help you save money by reducing the number of gifts to buy.

Develop a gift budget

A budget can help you stay on track through the next few weeks of holiday shopping. Start by listing the people you plan to buy gifts for and how much you can afford to spend this year. Allocate an appropriate amount per person, and keep tabs on your spending as you buy each gift. This can help avoid spending too much on one person -- or spending too much, period.