In this economy, many families are feeling the strain of debt and financial demands. After job loss or lay-offs and with rising costs, it might be overwhelming to even think about how to plan ahead for this holiday season.

If you are feeling discouraged or worried about how sparse it might be under the tree this year, you’re not alone. Every parent wants so badly to provide for their kids, show them love, and bring smiles to their faces with the joy and surprise of Christmas. 

For those who can’t afford it, feelings of guilt and embarrassment are hard to shake, even though their financial situation is not their fault. These emotions are normal and it’s important to acknowledge them. But the reality of the checking account balance, doesn’t change the fact that it is still possible to have a JOYFUL Christmas that’s simple and cost-effective. Here are five ideas to make this Christmas a meaningful one.

5 ideas to make this Christmas meaningful on a budget

1. Spend money on meaningful moments and making memories.

Creating memories doesn’t have to cost a lot of money. Decide ahead of time what you can spend. Include your kids and work together as a family to create a Christmas “bucket list”. 

Think back to some of your favorite childhood memories. Plan a family “sleep-over” complete with hot cocoa and popcorn, movie, and sleeping all together in the living room. Tell stories by candlelight. Drive around town to look at lights and decorations and crank the Christmas music loud. 

Plan a Christmas “scavenger hunt” and see how many things you can find: Santa, snowman, Christmas wreath, nativity scene, Christmas tree. Decorate sugar cookies! Buy the dough. If you don’t have cookie cutters, the kids can roll it out with a cup, or shape their own design. Frosting is easy to make with powdered sugar mixed, a little milk, melted butter, and food coloring. Mini-marshmallows and candies are great for decorating, or grab some sprinkles in the baking aisle. The moments you spend as a family are often more precious and long-lasting than anything you could buy.

Our kids have vivid memories of the Christmas we drove on icy roads to eat lunch and see a movie together. There wasn’t much under the tree, but the memories of laughing and a family trip “skating” across the parking lot have stayed with them longer than the gifts we gave that year.

2. Swap names and exchange gifts

Christmas is not just about getting, it’s about giving, so give your kids the gift of generosity. Exchanging names, even within immediate family members, can create excitement and is a great learning opportunity. 

This is a perfect activity for kids in grade school or older, and the lessons they learn are valuable. Kids learn what things actually cost and how to shop within a budget, as they create their own “wish list” and shop for their parent or sibling. They also learn the sacrifice and joy of giving. 

We all tend to be selfish by nature. It takes some work to move away from being self-consumed and think about others instead. It takes sacrifice to let go of the money in our hands and spend it on someone else. But watch their face as they hand that present over to be opened. The smile that grows reveals the anticipation and pride within. They are learning that the joy of giving outweighs the sacrifice it took.

3. Simplify. Sometimes less is more

It’s easy to feel the pressure of “more is better” or less is “not enough”. But gifts don’t have to be expensive to be meaningful. Thrift store, dollar store, and hand-me-down gifts are still special, regardless of the price tag or whether they’re name brand. Home-made gifts carry significance simply for the love and time poured into making them.

When our kids were young, there were several years that we struggled to make ends meet. The gifts we could afford were simple and few. And for many years our kids each got three gifts—something to wear, something to read, and something to do or play with. The kids have admitted to feeling embarrassed when they compared their Christmas to classmates who received more, but those feelings didn’t create resentment. And as they grew, they understood that these simple Christmases were a necessity, and they also learned to appreciate what they were given. Some of our favorite Christmas memories came from the joy from a hand-me-down dollhouse, the laughter of a thrifted “Dirty Santa” gift exchange, and the love of a home-made tray-table.

4. Serve and share with those in need

One of the best ways to grow gratitude is to step outside our own struggles and serve others. Whether donating items to a local food distribution center, filling a neighborhood free pantry, volunteering to serve a community meal, helping out at a homeless shelter, or making Christmas cards for Nursing home residents, giving your kids an opportunity to serve others helps to shape their view of the world. They experience the positive impact of a meal and a smile, and learn that helping others feels good. They gain the chance to grow in compassion as they meet people who are struggling and facing difficult circumstances.

It’s not always easy to get kids excited about serving others because it means stepping outside their comfort zones and facing the fear of doing something new. Don’t be discouraged if your kids aren’t too crazy about the idea. View this opportunity as a learning experience and trust that they might just come around after seeing the impact that service can have, on themselves and on others.

If you’ve got really young kids, remember that you don’t have to go outside to share with others; invite friends into your home! Showing hospitality and sharing a meal doesn’t have to be fancy. Macaroni and cheese, hotdogs, and pizza are all inexpensive options, but great crowd pleasers. By inviting people into your home, your family is creating memories and building community. It’s never about what you have to give, but your willingness to share what you have with others.

5. Savor gratitude and spread joy

Creating space for meaningful moments during the hustle and bustle of the holidays can be challenging. It takes intentionality to shift the focus from consumerism to contentment. One simple step is to count gifts—the kind that aren’t usually found under the tree. As a family, take time to list what gifts you already have. (You could even make tags to hang on the tree as reminders.) There are so many things in our homes and in our culture that we take for granted, things that many around the world would love to have. We forget to be thankful for the clean, running water that comes from our faucets because we have never walked miles for fresh water. We forget that we live in a country where all children have access to education, regardless of their gender. We forget how fortunate we are to have a roof over our heads, beds to sleep in, food in our pantries and fridges, and warm clothes to wear. Not everyone has these luxuries.

As we savor gratitude for the things we have, there is also an opportunity to expose our kids to other cultures and grow their compassion for children (just like them) who are living in poverty. There are many wonderful organizations that highlight the needs worldwide, such as World Vision, Samaritan’s Purse, Preemptive Love, Mercy House Global, Compassion International, and many others. Many of these organizations have gift catalogs where items purchased provide for children’s tangible needs for health, safety, housing, food, or education. Some organizations sell fair-trade items that can be given as gifts; these items provide dignified jobs and the proceeds from sales go directly to helping families in poverty.

What makes Christmas meaningful?

The real joy of Christmas isn’t found in the gifts under the tree. Instead, it’s found in the moments you spend as a family, through sacrificial giving, as you step outside your own struggles and serve others. It’s never about what you have to give, but your willingness to share what you have with others. And it’s worth the intentionality it takes to shift your focus from consumerism to contentment. May we each find that JOY this year.