Christmas gift ideas when you're on a budget

Christmas is almost here and this is the time we would normally start making holiday plans and (if you're super organised) putting together the present-buying list.

But it has been a difficult year with COVID-19 causing financial upheaval for many, and Christmas is one of those holidays that can quickly thin the bank balance.

Given that, people should be much more understanding if their friends and families are conservative with their Christmas gifts this year, according to author Rachel Smith.

Smith's book Underspent is about managing shopping habits and how she overcame compulsive spending.

"There's a lot of shame or stigma around not spending a lot of money," Smith says.

"A lot of people are really struggling to pay their mortgage and bills so it's about taking the pressure off.

"It's about not giving people things they don't want."

Give the gift of time

With Melbourne just coming out of lockdown, and social distancing measures still in place across the country, spending time with family and friends is priceless.

"A family friend might just need some help with their garden, or maybe you might offer to babysit your friend's kids," Smith says.

"Often those things are more valuable to people."

Be creative and make something

What better way to give a heartfelt gift than to make it yourself.

A DIY terrarium made from plant cuttings from the garden can cost as little as the second-hand pot from a charity store and a bit of potting mix.

And no-one could bemoan the gift of food.

Gabrielle Wallace, president of the Country Women's Association's Sydney City branch, says baking a cake or slice is something you can make with the simplest ingredients from the pantry.

If you want a present that lasts, bottling jam, making chutneys or pickling some leftover veggies can last for months and even years if done correctly.

"I think it shows you care, you've given some thought to their preferences and you value them enough to make something," Ms Wallace says.

One idea Ms Wallace suggests is to fill a jar with dry ingredients for a soup, or your own cake mix, tie a ribbon around it and attach a recipe.

"They'll know what the ingredients are — it's a great alternative to a supermarket packet," she says.

Can you re-gift?

Packaging up a second-hand item is both sustainable and low cost.

You could get creative and upcycle items you have at home and make it new again.

Visit a second-hand bookstore, or browse your own bookshelf (or a friend's with permission) and pick out a good read.

"If you have a book you've read and it's all neat and tidy and nobody would know it's been read before, you could write a card or write inside and re-gift that," Smith suggests.

"If you've got young kids, you could find other parents or carers who have toys or children's books that you can swap around."