Where to Scrimp, Splurge On Holiday Gifts

Dec. 13, 2008— -- Trying to save a little money this holiday season? It seems logical to scratch off a couple names toward the bottom of the gift-shopping list--like the doorman, the nanny or the teacher.

But skipping out on gifts for those who go out of their way for you much of the year is not the right way to save money, experts say. Instead, be realistic about what you can spend and on whom.

Click here to learn more about where to scrimp and splurge on holiday gifts at our partner site, Forbes.com.

"It's still important to splurge on people who fit you into last-minute appointments or take care of your children--like an assistant, baby sitter, hairdresser or dog walker," says Stephanie Robinett, public relations coordinator at Amazon.com.

She recommends purchasing a case of wine--many retailers offer a by-the-case discount--and giving a bottle to each recipient, such as coworkers and assistants. Personalize each bottle by pairing it with an accessory like an opener or set of stoppers.

"Anything you give will be appreciated," says Gillian Joseph, director of merchandising at Gifts.com.

If everyone should still receive gifts, how does one save? The key is avoiding buying too many gifts for loved ones, says Rhonda Grote, founder of Thinkthoughtful.com, a gift Web site.

Instead limit gift-giving for close family to one or two special, thoughtful presents. Grote also recommends cutting back on the amount of money spent on holiday cards and wrapping paper, which can quickly add up. "The money you save you can then use for these other people on your list, like your manicurist or hairdresser," she says.

When it comes to extended family and friends (and their children), Joseph says you should have a frank discussion with them early on about how much you will spend and who will be trading gifts.

According to a survey by Consumer Reports, 59 percent of respondents said they plan to cut back on gift giving. Of those who plan to spend less, 40 percent said they are scaling back on friends and friends' families. So instead of buying gifts for each of your friends' children, Joseph recommends getting a family gift like an accessory for the Nintendo Wii or a board game that everyone can enjoy together.