Stretch your gift-giving budget this holiday season
By Jennifer McPhee • Bankrate.com

About a month before Christmas, she figures out whose left on her list, walks into a discount store and gets creative. One of her favourite ideas involves pairing kitchenware -- such as a cool mixing bowl and spatula -- with a package of gourmet muffin mix. "Together, that seems like a thoughtful gift, but it might not actually cost very much," she says.

She also gives magazine subscriptions because people love receiving them, and they usually cost just $20 for the entire year.

Research
Before you begin buying the items on your list, chat with people about what you're looking for. At Frugal Shopper Canada, seasoned bargain-hunters swap coupons and trade secrets about where to find amazing deals. For instance, it's a little-known fact that the Wal-Mart at the Square One shopping centre in Mississauga, Ont., sells children's toys for much less than any other Wal-Mart during the Christmas season, says Clancy.

When you spot a fantastic deal in a flyer, Clancy suggests calling the store first to make sure the item is in stock. If not, ask for a rain check and find out exactly when the new stock arrives, she says. And don't forget to ask about a store's price adjustment policy. When something goes on sale soon after you purchase it, some stores will give you back the difference, she says.

Shop early
Shop when you're feeling desperate and you're bound to spend more money, so start earlier this year. And, if possible, avoid the craziness of malls on weekends, says Laurie Campbell, executive director of the non-profit Credit Counselling Service of Toronto. "You'll get three times as much done on a Monday and you'll spend less," she says. "If that means bartering babysitting with another person, then do it."

Don't wind up sad in January
This year, retailers are slashing prices earlier than usual because they want nervous consumers to keep spending. Use these sales to your advantage, but don't get seduced into buying stuff you can't afford, warns Campbell.

Scrimp, save and cut down where you can, and then have a little fun with your money, says Knuckey. Above all, live within your means. "It's not smart to go into debt for the sake of a pile of gifts," she says. "And in tough economic times, cutting back makes even more sense than usual."

Jennifer McPhee is a freelance writer living in Toronto.