Christmas Clubs and Budget-Friendly Gifts [Video]

In the 1970 musical Scrooge, even the grumpy Christmas-hating Scrooge eventually realized that “December the 25th is the dearest day of all the year!” (Watch the trailer here.)

I never needed any convincing about that. The sound of Andy Williams singing that Christmas was “the most wonderful time of the year” had always filled our home during the holidays. We grew up believing Christmas is wonderful. Listen to the song with the following YouTube video!

For us kids, it was a magical time, filled with melodious carols, tasty treats, and lopsided snowmen in our Michigan yard. We spent hours playing board games or watching Christmas movies, fantasizing about the contents of packages under the tree.

Fast forward to my first real job as a teenager. I had gone from babysitting to being a part-time office receptionist. It was a great opportunity, and I had a steady paycheck!

My first Christmas Club

One of the first things I did was to open a “Christmas Club” account. My mom had always done it, so I decided it was the smart thing to do, plus it was fun!

These annual savings accounts, which were popular in the ’60s and ’70s, but have pretty much gone out of style. However, some smaller community banks and credit unions still offer them.

Given the current global financial difficulties, I think it would be a good idea to bring them back. Between inflation, high taxes and rising prices, many people are struggling to pay their bills, let alone afford holiday gifts. Maybe Christmas Clubs could help.

How do Christmas Clubs work?

A Christmas Club is a special savings account that is typically free. Customers make weekly deposits of set amounts throughout the year. Then, just in time for their holiday shopping, they can withdraw their money!

Some banks even allow direct deposit from your paycheck. This option wasn’t available back when I had a Christmas Clubs. I had to diligently remember to make my weekly deposits, which were recorded in my little savings book.

I was so proud of that booklet, and of the first “real gifts,” I was able to buy for my family, including a new bed for mom’s Maltese dog, Tao.

I ending up insulting my dad a bit, though, by buying him an XXXL flannel shirt. I was pretty small for my age, and at 6 feet he had always seemed so big. Fortunately, I was able to exchange it for a smaller size. “Sorry Dad, I didn’t mean to make you feel overweight!”

Back then, banks encouraged customers, even children, to open Christmas Clubs. I think they’re still a great idea, especially for children. They teach diligence, the importance of saving, and the joy of giving.

Focusing on what each family member wanted or needed, helped me helped me think about others instead of just myself and what I would get for Christmas.

I’ve become smarter about my Christmas shopping since the oversized shirt mishap. But Hubby and I still focus on practical gifts and try to figure out what others might need. For example, we give bags of groceries or shoes for growing kids. Meeting real needs brings us great joy!

Banks don’t offer Christmas clubs here in Italy. I had always found them useful, though. Having a spending limit pushed me to find creative ways to stretch my budget, and be more thoughtful about gift giving.

Hubby and I still set limits on our spending, including for gift-giving. It helps us stick to our budget! So I thought it might be useful to share some of our frugal, hard-times gift ideas here!

My budget-friendly gift suggestions:

They are all packed with useful life lessons. Simple and useful lessons that get passed on without people even realising they’re learning them!

1. Write your family history ✍🏼

Then, turn it into a beautiful booklet (or even create a blog of memoirs) for your children, grandchildren, or loved ones. Many memories and stories are lost when family members pass away. Writing your memoirs is a special gift that will live on long after you’re gone, and keep a record of your family’s history.

Life Lesson: This gift shows that family, not possessions, is what truly matters in life.

2. Make a Memory Jar 🫙

Pass out old photos, giving them to family members and friends. Ask them to write down any memories they have about the event or people in the photo. Then, have them put the photo and their memory in an envelope and return it to you. Once all the memories have been returned, place them in a large decorated jar. If you collect 365 photos, one for each day of the year, this could be a meaningful gift that lasts the whole year.

Life Lesson: This simple activity illustrates that memories are more valuable than material possessions. The true story from my post “But What About the Memories?” illustrates this lesson perfectly!

3. Help a child open a💲savings account

Open a savings account for a child, or perhaps their own Christmas Club. Make an initial deposit and add more throughout the year for birthdays and other special occasions. Encourage them to contribute to the account on their own. Having their own bank account will be useful for them and make them feel grown up.

Life Lesson: This useful and rewarding gift will teach kids the value of budgeting and saving.

4. Hold a Cookie Exchange 🍪

Host a cookie exchange where guests bring a plate of cookies and several copies of their recipe. Serve snacks and play some games. Then give everyone a paper bag to take home filled with one cookie from each of the plates your guests brought, along with all the yummy recipes. This get-together is also a great idea for churches and offices.

Life Lesson: This fun activity shifts the focus from shopping to showing that even simple gifts can be enjoyable and useful. It also makes your holiday baking easier. Your family will get to enjoy many kinds of cookies without you having to spend all day in the kitchen! Plus, you get to try new recipes!

5. Have an Abundance Swap  🏷️

It’s like a flea market, except everything is free! Participants bring 1-3 used items from their homes that are still in good condition. These items can be useful, beautiful, fun, funny, or interesting. Guests can stay to visit, enjoy snacks, and choose free items to take home, according to how many items they brought. This swap is a great way to get rid of clutter, because you can exchange things you don’t use for things you’ll use!

Life Lesson: This unusual gathering teaches that true value is found in beauty or usefulness, not monetary value. It also introduces the idea that gifts don’t have to be brand new. Sometimes old treasures are the best!

6. Do a Five-Hand Christmas 🎄

This idea is perfect for removing the commercial aspect from Christmas. It offers five ways to personalize and enhance the thoughtfulness of your gifts while also protecting the environment! I’ll let you discover these surprising ideas, and their many life lessons, for yourself by reading my post: “The Five Hand Christmas”.

If you want to simplify your Christmas holidays and make your gift-giving more meaningful, give these 5-hand ideas a try. Then, let me know how it goes!

📷 Image credits: Ornaments | Cookies | Club invite.