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According to the American Research Group, the average American will spend $658 on Christmas gifts this year, some even saying they will spend over $1,000.

Despite holiday tradition, it is always difficult to rationalize dropping that amount of cash for the sake of one day out of the year. This spending binge is also a reminder that we have lost sight of what Christmas is truly about.

As sappy and Tiny Tim-esque as that may sound, Christmas is meant to be a time to be surrounded by your loved ones, sharing good food and a few laughs. If gifts are exchanged, their value should be found in the thought behind them, rather than their price tags.

Many will argue that spending serious dough does show the thought behind the gift. But, what type of heartfelt thought did it take to purchase that iPad, or that Wii? The trip to the store and hundreds spent could never be a substitute for the time and care put into a homemade or personalized gift. Here are some ideas to get your creative juices flowing:

Homemade or Low-Cost Gifts:

• Make homemade treats like bread, cookies, jams, salsa, pasta, etc. for those friends or family members with a kitchen-phobia.
• Give a set of personalized recycling bins and reusable shopping bags, or some organic cooking ingredients to your “green” friends.
• Toss a bunch of items in a themed gift basket- a few bucks to rent from Red Box, a box of popcorn, soda, and a few cheap DVDs for movie lovers!
• Knit or sew mittens, scarves, or blankets for the cold days to come.
• Fill a big coffee mug with hot chocolate and marshmallows, or a bag of coffee or teas.
• Buy a few of her favorite gossip magazines, or a few Sports Illustrated for him.
• Make homemade candles or buy a few to create winter ambiance in your friends’ home.
• Create oragami or paper art gifts at the cost of construction paper.

Photo Gifts:

• Coasters – Find them at Bed Bath & Beyond, with cut-outs to fill with pictures they’ll love.
• Homemade collage – Print pictures yourself at your preferred store, lay them out on construction paper, and frame with anything you wish.
• New digital keychains – Like the frames (which have also come WAY down in price) display an ongoing slideshow of pictures to take with you wherever you go (as low as $8.00 on Amazon.com)
• Ornaments: Easy to make out of a group of pictures.
• Websites like Snapfish and Shutterfly offer custom calendars for $15.00 or less, and other photo gifts such as mugs ($12.00) and mousepads ($8.00).
• Turn photos or home movies into a production set against music. iMovie is amazing for this project, as well as Windows Movie Maker. Burn a DVD or post to YouTube for sharing

Priceless Gifts:

• Homemade coupons made for massages, cooking dinner, free babysitting, washing the car, cleaning the house, etc. to please Mom and Dad or the wife.
• Type, print, and organize a bunch of family recipes for those who have just left the nest or are in need of domestic assistance.
• Artistic? Draw or paint a picture! The end product will be perfect decoration for the home or the office. Or, you can make a comic book or picture book for the kids.
• Whatever your talent (music, art, karate, yoga, cooking) offer lessons!
• Make some mix CDs of existing music on your computer which tie into important memories; no cost if you already have the CDs.

Whether or not you are on a budget this Christmas, or have over $1,000 to spend on shopping, try some of these ideas that will cost you little to no money at all, but will give the person on the receiving end that warm, fuzzy, Christmas feeling inside.

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