Where to Scrimp, Splurge On Holiday Gifts

Appropriate Gifts

The Consumer Reports survey also found that 30 percent of respondents planned to spend less on service providers such as delivery people, hairdressers and gym instructors, and 29 percent aren't giving as much to coworkers. But that doesn't mean those who hope to spend less this year should revert to the classic fruitcake option or giving other baked goods.

Instead, look for items that make the recipient's life easier, Grote says. "It doesn't need to be expensive, but good quality and have a purpose," she says. A fruit basket doesn't show quite the appropriate level of appreciation. Instead, Grote recommends a chic umbrella or goody bag filled with items to help keep one's car clean or organized.

While gift cards tend to be an easy option, especially for people you do not know well, they're not necessarily the right gift when you need to save. For example, if you normally get your dog walker a $50 gift card to Starbucks and this year can only give $25, it will be much more noticeable than if you purchase a cashmere scarf on sale for the same price.

Also steer clear of gifts that cater more to the recipient's profession rather than his or her interests. Your nanny would probably prefer a chic handbag or clutch she can use on a night out, rather than an appliance or gadget for the kitchen.

"Remember, these people are humans first and their profession second," Grote says. "Avoid gifts that help them do their job better and look to items they can enjoy in their downtime."

Drawing the Line

The final, and perhaps most important key to saving on holiday shopping, is to know who you truly need to buy gifts for and who you don't.

While it makes sense to give back to those who make your everyday life better or easier, don't feel obligated to purchase a gift for everyone you come across. If you do not normally buy a present for a certain delivery person (or if the delivery person isn't the same from day to day), this is not the year to start, Joseph says.

"These people realize everyone is cutting back," she says, "and won't take offense."