Presents for children are a priority at Christmas.  It is their special time so you don't want to disappoint them. When considering what gift to give a child, remember that they will be receiving countless presents from their extended families. Yours does not have to be the best - it is not a competition. Young children especially will be satisfied with the humblest of offerings as long as you choose carefully, e.g. plasticine and cookie cutters, finger paints, bath toys and bouncy balls are still winners with the very young.

There's plenty of time to 'up' their share of the budget later. For older children, a carefully chosen book or small make-up set will be a lot more popular than a more elaborate electronic offering which they will discard on Boxing Day.

My chosen way to set a Christmas gift budget is the same method I use to split my (as yet fantasy) lottery win. Percentages. First, decide how much you can spend without causing you undue hardship in the New Year. Once you have your figure, decide to whom you will be giving Christmas gifts. Then, fill in the magic percentage number, e.g.

1. Partner = 25%
2. Daughter = 20%
3. Son = 20%
4. Granny = 10%
5. Grandad = 10%
6. Miscellaneous small gifts = 15%

You can juggle your figures until you come up with something you are happy with. If you happen to get a real bargain for someone, adjust their percentage downwards and allocate more to someone else or, better still, leave it in the bank.

Who does their Christmas shopping in January?

There is nothing to stop you buying products on special offer in supermarkets and department stores. Outdoor toys are sold off at the end of summer, the same can be said for summery clothes, bags and accessories. Summer will come round again so these presents are perfectly valid. Supermarkets tend to have half-price promotions on champagne in the run up to Valentine's Day. Who wouldn't like a nicely-wrapped bottle of champagne left for them under the Christmas tree? 

Online Shopping Another modern favourite for budget Christmas gifts is . It costs nothing to join up and start bidding. Take the time to browse the site and learn how things work before 'taking the plunge'. Keep your wits about you, check out sellers' feedback and history before deciding to buy from them. There are lots of wonderful individual sellers and companies on  Ebay. There are also a few con artists. As in all aspects of life, if an offer seems too good to be true, it probably is. Decide beforehand what you are looking for and how much you are prepared to pay. Stick to your budget. Check that the seller will deliver in time for Christmas - don't 'cut it fine', that could be a recipe for disappointment.

Ebay is also great for pretty packaging, e.g. organza drawstring gift bags, crepe paper etc. Buy in bulk (e.g. a pack of 20-30 organza bags) and use throughout the year to make less expensive jewellery/make up etc look more luxurious. Download Your Gifts Downloadable gifts can be great value and economical alternatives to conventional presents. Because the suppliers have few overheads and even fewer production costs, great value downloadable gifts can be purchased for a fraction of the price of the over-packaged products on the high street.  For example, PSPs bought for previous Christmas and birthdays can be greatly enhanced by endless downloadable content . Games, films, wallpapers and software are all available to download at a fraction of the store-cost. e-Books e-Books really are the most versatile present to give at Christmas. An e-book is a downloadable version of a 'traditional' book. There is a book for everyone at Christmas and e-books now cover a wide range of interests and subject-matter. You can download this gift instantly and will benefit from a lower cost than on the high street, again, due to lower overheads and production costs. Try this e-book supplier  and you'll get a good idea of how e-books work and how easy it is to download them. The other benefit of downloadable gifts is that they can be purchased at the very last minute as the stores never close and delivery is instant. No more midnight trips to the local garage for an unimaginative box of sweets...! Reward/Loyalty Points

The most important thing to remember with your points is save, save, save! Don't spend them on your regular grocery shopping.  Use them to purchase 'Rewards' from the issuer.  Tesco Clubcard points, for example, are worth a penny a point when spent in the store on your groceries.  Use them to buy 'Rewards' however, and they are worth 4 times as much. So the £5.00 voucher that pops through your letterbox every quarter, could be worth £20.00 towards Christmas gifts for your family and friends. Take a look at the Tesco Clubcard Deals site for inspiration.

Online Discount Vouchers

There are a number of websites that collect special offers and discounts from an extremely wide range of retailers and service providers. Before you purchase items online, check out these sites and see whether you can save.  

Cashback sites Cashback sites are the secret weapon of clever internet shoppers. Make your online purchase through a cashback site and the retailer will pay a percentage back into your bank account. It's a way for retailers and service providers to attract new custom. It costs you nothing and you end up with exactly the same product.  Always, always, always check out your cashback sites before shopping online. Get started at Quidco and see how much you can make back on your Christmas shopping.

Homemade Christmas Gifts

Homemade Christmas Gifts? Does the phrase alone strike terror into your heart? What are you imagining right now? Well, there are lots of ideas for homemade gifts and cakes and biscuits are just a couple of (great) ideas. Who doesn't like a nice cake, after all?

Let's start with your abilities. Maybe you have a creative hobby or maybe you could turn your hand to something new.

Photography - All you will need is a camera. Take a photograph of your intended recipient or of someone/something dear to them. The easiest idea is to have the photo enlarged at your local photo shop and mount it in a nice frame from a local discount store. You can buy card mounts for a couple of pounds and frames for around the same price. You can also pick up cheap frames in most charity shops. Just discard the picture they come with! Maybe convert the photo to black and white for more dramatic effect. The more adventurous might choose to manipulate the photo using the software on their computer. You can give it the appearance of a hand-drawn picture or of an oil painting. Experiment with photos of your own children, pets etc and see what effects you can achieve.

Needlework - Did the cross-stitch epidemic pass you by? If so, don't worry. You can pick up cross-stitch kits from craft shops for a few pounds. They contain all you need to produce a personalised gift. Choose a small, simple design to get yourself started. These make perfect gifts, especially if you can incorporate the recipient's name, star sign etc. If it turns out you are a whizz with the needle, you can move on to more elaborate designs for cushions etc. Beware, however, these can be reasonably expensive.

Hampers - A hamper doesn't just need to contain food. Why not build a hamper full of toiletries? You could buy travel size versions, add a small sponge or loofah, send off for samples of products from the internet during the year. Arrange them in a box or basket with some shredded paper and tie up with cellophane and a bow. You could make a food hamper with small tins/jars/bottles of unusual ingredients which the recipient might not normally buy for themselves. A young girl might approve of a hamper containing hair ornaments, lip balm, budget earrings and stickers etc. Let your imagination run away with you.