Brandy, The Prudent Homemaker, has put together this special post! I think all of us will find it very helpful and encouraging, as we seek to make Christmas a special time for our families.
CHRISTMAS ON A ZERO-BUDGET:
What do you do when you have no money to spend on Christmas gifts? What if your budget is small, but you'd still like to give more? What can you do to still have gifts under the tree? Here are some ideas for an enjoyable Christmas without spending a dime.
CHRISTMAS CARDS
Rather than spending the money to mail Christmas cards, send an email Christmas card instead. You can send a Christmas letter or a regular card-style Christmas greeting.
If you want to include a family photo in your card, or just have a family picture to hang on your wall or give as a gift (to grandparents, etc), set up an at-home studio.
Create a backdrop by using a solid colored sheet or blanket (or even curtains!) hung from a curtain rod, a broomstick, or, at my house, leftover electrical conduit. You can use safety pins to hang the sheet from this. Hang your backdrop between a ladder and another high object (I used a ladder with a box of diapers on top, and a piano with a box of diapers on top.)

Arrange for seating for your family in front of the backdrop. We used a piano bench before, and we have also used a chair for individual photos.
Dress in your Sunday clothes for a more formal picture, or whatever outfits you want for your portrait.
Set up your camera on a tripod and take a few test photos ahead of time. Use your camera remote to take pictures, or ask a friend to come by and take them for you. Take lots of pictures!
If inside doesn't appeal to you, take the photos outside! You'll have great natural light.
Crop your finished photo in the computer.

DECORATIONS
If you have a faux Christmas tree, it can be a great blessing at Christmas because you don't have to buy one. In some areas of this country, a tree can be $10. Where I've lived, a cut tree is always about $65-$120. Having a fake tree saves us money every year. If you don't already have a tree, but you have some paper, consider a paper tree taped on the wall (either butcher paper, painted green, pieced construction paper-whatever you have) and have your children help you make the ornaments to glue on it.
If you haven't been able to buy ornaments, consider homemade. Use popcorn, sew or crochet some ornaments, have your children make paper chains and paper ornaments. My grandfather carved baskets from walnut shells that we hang on our tree each year.
Cut some paper snowflakes to hang on the windows or on your tree.
Don't have a nativity, but would like to display one? Use
this printable nativity to make one.
Use greenery from your own yard, whether it's evergreens and pine cones, boxwood, magnolia branches, to "spruce" up your home.

GIFTS
If you don't have money to spend, use what you have.
If you want to give candy or food gifts, in your family's stockings, you can make your own! Make caramel popcorn, cookies, and candies from items on your pantry shelves. Wrap them beautifully and put them in stockings or under the tree.
What about your spouse? Perhaps there is a service that you can perform for your sweetheart. Is your husband needing some pants hemmed, or some shirts mended? Maybe there is a project around the house that you've been meaning to take care of, but haven't taken the time to do it. If you have the supplies already, take care of it for your gift.

GIVING TO FRIENDS
Consider homemade
French Bread, cookies, breakfast muffins, or canned fruits and jams from your garden. Give herbs that you have dried from your garden or seeds you've collected.
What about charities? Do you want to give to others who are in need more than you are? If you're looking for ways to serve others without spending money, read
here.

STOCKING STUFFERS
We tend to forget that traditionally, all of one's Christmas presents fit in one's OWN stocking. They weren't the big decorative stockings that we hang today; they were simply your own socks.
Today we tend to put most of our presents under the tree. So when you're wondering what to put in your family's stockings, don't feel like it has to be a lot of presents. It can be simple things.
Or, you can do things the old-fashioned way, and put all of the presents in the stockings!
Here are some other ideas for stockings:
-Printable paper dolls and paper toys
-A coloring book made from printable pictures found
online.
-Bookmarks
-Handkerchiefs: I make these for my children and they really like them! I have used an old top sheet (after the bottom sheet wore through), as well as flannel, muslin, and broadcloth. My children like these with their initials embroidered into a corner.
-Hair ribbons and barrettes: Take the ribbons you've been saving and turn them into hair ribbons. Change simple old barrettes into something different using a few tutorials.
-Jewelry: Have any bits of broken jewelry? Using a pair of needle-nosed pliers, put those together into something new.
-Candy and cookies
-Nuts or raisins from your pantry (bought in bulk and then repackaged into smaller packages, tied with ribbon)
-apples and oranges
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Click here for printable paper dolls, 3-D toys, bookmarks, gift tags and boxes, and more frugal gift ideas.
LET OTHERS KNOW
If your needs are tight this year, its okay to let others know. This might mean having grandparents buy needed clothing for your child. It might mean that someone you know shares their hand-me-downs with you and you wrap some as gifts for your children. Last year, a friend gave us 4 outgrown scooters from her children, and we put them under the tree.
Perhaps you can do the same for another family this year, who may need baby or toddler toys and books that your children are no longer using.
If you sew, let others know. Many older women who don't sew anymore have quite a large amount of fabric. They may not be sewing anymore, but would love to bless someone else who COULD use that fabric. You may be able to make many gifts from this fabric. Perhaps your children need a warm blanket on their bed. A quilt made from other's leftover fabric can fill that need. A warm dress, pajamas, a fabric crown, etc. could all be under your tree this year. They will be under mine, thanks to several kind women who shared their fabric with me this year.
A Special Thanks to Brandy for taking the time to put this special post together. May the Lord use it to bless others.
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PennyPinchingParty
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Updates:
Brandy has added even more to her site since this post that will help you with Christmas.
Dollhouse Printables
Birthdays- there are ideas here that could help you with Christmas too!
Frugal Gifts- this is linked above but she's continued to add to it.
Encouragement- "Lifting yourself up on the difficult days."