7 Ways to Not Spend $730 on the Holidays

This year, the National Retail Federation forecasts that consumer spending around the holidays will increase by 4.1 percent from last year. But just because it's forecasting that, it doesn't mean you need to spend 4 percent more than last year's average of $730 that Americans spent on holiday purchases. As you prepare for the most festive time of year, here are some ways to trim your spending -- or, at least, keep it from ballooning out of control.

1. Focus on memory-making.

It's so easy to get caught up in the buying and giving of (often expensive) gifts over the holiday season, no matter which winter holiday you're celebrating. But if you think back to your childhood -- or even last holiday season -- you probably don't remember the gifts you got outside of a few really special, thoughtful presents.

Starting the holiday season in the right mindset is essential. Don't focus on huge wish lists from your kids or buying every person on your list something luxe. Instead, put some serious thought and planning into ways you can make memories this holiday season. Here are some ideas to make time for:

-- Watch classic holiday movies

-- Make do-it-yourself decorations

-- Play outside

-- Make some new winter recipes with your kids' help

-- Spend an evening checking out holiday displays

-- Bake cookies for your neighbors or co-workers

-- Organize a white elephant gift exchange

-- Volunteer alone or with friends and family members

-- Make and send cards or family letters

You could even plan a traditional holiday countdown -- like the traditional Christmas Advent calendar. Think of something fun to do as a family each day before your favorite winter holiday. Even setting aside 10 minutes at night to read a special story or make a small craft with the kids will create memories that will last for years.

2. Find a budgeting tool you like.

You probably already know you need a budget for the holidays. But how are you planning to track that budget? All too often, people will have an ideal amount to spend on the holidays in mind. But if you aren't keeping track of every single purchase, you'll overspend more quickly than you can say "Happy Holidays!"

If you don't already have a budgeting tool, get one before you start buying holiday gifts and decorations. Here are a few good options to try:

-- Spreadsheets: This old-school budgeting method works well if you remember to write down all your purchases.

-- Mint.com or a similar app: Budgeting apps that automatically sync with your bank account to download transactions are great if you're too forgetful to write them all down.

-- Cash envelopes: Spending cash is the easiest way to spend less money. When you run out of cash, you're done spending.

3. Make a gift list by dollar amount.

Start by deciding how much you'll spend, in total, on gifts over the holiday season. If you need to, make a separate budget for things like decor and party supplies. Then, make your gift list by dollar amount -- not by the specific gift you're planning to purchase for each person. You may have to spend some time juggling amounts on the list, as spending more on one person might mean taking dollars away from others.

Once your dollar amount gift list is done, you can decide what to give each person. The Internet abounds with creative, thoughtful, super cheap gift ideas you can make. So don't worry if several people on your list wind up with a budget of $10 or less. You can still give them a great gift with some time and thought.

4. Arrange for exchanges.

Perhaps the quickest way to overspend during the holiday season is to try to buy something for everyone you know. This is hard if you're a person who just likes to give gifts or if you have a large family or group of tight-knit friends.

But buying for everyone spreads your resources thin and your credit card debt thick. Instead, arrange for gift exchanges. Have everyone draw names out of a hat, so that every person in the group buys a gift for just one other person. This allows for more thoughtful gift-giving and reduces the total amount you spend on gifts.

5. Give DIY gifts.

If you plan ahead, you can save a load of money by taking a leaf from your great-great-grandparents' book -- have a DIY holiday. Even if you're not crafty, there are plenty of great DIY gift ideas out there. Check out these ideas for under $5.

Don't want to make gifts yourself? At least stop spending a fortune on holiday decor by making your own. Old-fashioned cranberry-and-popcorn strings are beautiful -- especially when you know they don't come with a side of credit card debt.

6. Follow your gift-list retailers.

Already have some specific gifts in mind? Or just a few places you prefer to shop? Follow your favorite retailers on Facebook or Twitter. Many post discounts and sales around the holidays that are exclusively for their followers.

If you take this route, though, have a budget ready to spend when the sale is on. Often, these sales will last for only 24 hours or a little more. So you want to be sure your savings account is flush with holiday cash so that you can buy gifts when they're on sale -- even if the sales are well before gift-giving time.

7. Get thrifty.

Local thrift stores can be a surprisingly wonderful place to shop for the holidays (especially if you can hit one of the couple remaining Goodwill half-off days before the holiday season). Even if you don't want to give DIY gifts, you might find something for everyone on your gift list at the thrift store.

Sure, thrift stores are full of hilarious doodads no one really wants. Use those for white elephant gift exchanges. But savvy thrifters can also come across high-end clothing with the tags still on, antique decorative items and gorgeous housewares.

Sometimes all you need to complete a thrift store gift is a can of spray paint and some creativity. Here are a few ideas:

-- Terrariums made from old jar

-- A scarf that you could make from old T-shirts or sheets

-- Magnets made from Scrabble tiles or made from plastic animals

-- A fancy ruffled lamp shade

-- Candles made in thrifted teacups

When it comes to saving money around the holidays, attitude is just as important as planning. If you have the outlook of wanting to make the holidays memorable -- not necessarily to buy everyone on your gift list haute couture handbags -- you'll come up with creative ways to give gifts and save money.

Abby Hayes is a freelance blogger and journalist who writes for personal finance blog The Dough Roller and contributes to Dough Roller's weekly newsletter.