Ho ho ho: the economy is in the crapper. Wall Street might be getting billion-dollar bailouts, but most regular Americans are feeling the pinch. Since modern-day Christmas has become more about Black Friday and big-ticket items than Baby Jesus and breaking bread, money woes may be diminishing your holiday spirit. But that needn't be the case. There are easy ways to be frugal and still give with the best of them.

Tip 1: Set a budget

Duh. Setting a budget is the easiest way to make sure you don't overspend. But it's also one of the hardest resolutions to stick to. Every year my family and I sit down at Thanksgiving and hash out a limit on presents. And every year we all show up for Christmas dragging in bag after bag full of presents, shrugging our shoulders and saying, "I saw this, and I just thought of you. It's only money." But that was before our 401Ks disappeared like so much evaporated eggnog.

Holiday budgets are especially tough to stick to because shopping for other people is fun. It really is better to give than receive when you're responsible for your niece's favorite present, and we all want to show our loved ones how much we think of them. So treat it like that other perennial self-improvement resolution, losing weight. Develop little cheats that will enable you to inch closer to your goal, knowing that you're likely to fall off the horse if you go whole hog (or any other metaphor you'd like to mix).

For instance, consider layaway. Layaway used to be fairly common in blue-collar department stores, but has become somewhat rare in recent years. In this dreary economy it seems to be making a comeback; in fact, Sears and Kmart are heavily pushing this feature in their holiday promotions. Layaway involves putting a down payment on an item, which is then held by the store until you can pay the full cost over time. Going the layaway route ensures that you'll get the gifts you want, but gives you a longer period to pay for them.

Tip 2: Make it yourself

Yeah, your sister would love that Birkin bag. But you know what else she'd love? A big ol' plate of fresh-baked Christmas cookies, right from your oven. Mom could probably get some use out of that foot bath, but what about some homemade botanical crèmes or body scrubs?

There's no shame in going the DIY route when gift giving. If the old adage "It's the thought that counts" rings true, think of all the points you'll rack up while scorching your fingertips baking Christmas cookies, or stabbing yourself with stems while creating artful holiday flower arrangements, all for your family and friends.

Craft stores sell all kinds of kits that allow you to create everything from personalized candles to mosaic mirrors to wine charms for a fraction of what you'd pay for the pre-made items. And many area libraries or educational organizations like Cornell Cooperative Extension hold craft workshops specifically geared toward holiday gifts (check out the holiday calendar for some specific classes).

Tip 3: Keep it local

Save yourself long lines and endless driving by checking out one of the countless arts & crafts sales going on between now and the holidays. Several arts organizations like Anderson Alley Artists, More Fire Glass Studio, and the Second Storie Indie Mart hold special events with work by local artists and craftspeople that you can interface with directly. There are also several major shows - the Metro Justice Alternative Fair, Rochester Museum & Science Center Holiday Bazaar, and Dome Center Holiday Antique Show, to name a few - that feature dozens of vendors bringing their wares to you. Check out the holiday calendar in this issue for more information.

Tip 4: Make a game of it

If you've got a big family or a lot of friends, even inexpensive gifts can add up to big bucks when the list is finally checked off. Rather than having everybody in your group buy for everybody else, have some fun with it by creating a game.

Many offices do Secret Santa (or, if you prefer, Secret Non-Denominational Holiday Icon). It's typically an opt-in system where all the participants set a price limit, put their names in a hat, and then pick only one name, and buy a gift for that person. Consider upping the usually thrifty spending allowance and employing it with your siblings or friends.

For a feistier version, consider Yankee Swap, a.k.a. Steal Bingo, a.k.a. White Elephant Exchange, a.k.a. Nasty Christmas, a.k.a. Thieving Elves. There are almost as many options to this game as there are names, but the basic gist is everyone in your group comes to your gathering with only one wrapped present. No names are put on the gift, and the presents are put in a big pile. Everybody is randomly assigned a number, which determines the choosing order. The first person picks a present, unwraps it, and shows it to everyone. The second person can either pick a different present, or steal the present from the person who has already chosen. If that happens, the person whose present was taken then gets to pick a new present from the pile, or steal from someone else. This goes on until everyone has picked a present.

You can find better rules online, or just watch the "Christmas Party" episode from the second season of the American version of "The Office." (But note that it doesn't have to be nearly that cut-throat.)

Tip 5: Go on with your bad self

If all else fails and you still need some gifts on the cheap, consider being really naughty for the next month. That'll lead to Santa depositing his standard lumps of coal in your stocking, which you can then re-gift to friends or family. And since we're now on the brink of an energy crisis in addition to an economic recession, fossil fuels are actually pretty handy!