How do we handle the holidays when budgeting is on our minds? Our family and kids know we love them, and if they don't, spending money won't fix that. We need to talk about the realistic limits our family has decided upon. Focus on what's affordable. I'm not saying that this sounds like fun in a society geared to consumerism and name brands (think Zhu Zhu electronic hamsters), but it doesn't have to be gloom and doom either. It's OK for there to be some disappointment, which you can meet with understanding and hugs. Maybe you can afford just one special hamster, which you let your child select, and talk about expanding the collection at birthday time or throughout the year. Maybe not, in which case that's OK.
We can also help our kids grow as people by teaching them what it means to give of ourselves and have empathy for others. For example: Make presents together. Explain how special it would be for her (or him) to write a poem or a thoughtful note (even an e-mail) to someone, make a drawing, create origami for a sibling or friend, to cook up homemade ice cream sauce or cookies together or visit an elderly relative.
Create "promise notes:" doing a chore for a sibling, having a favorite dish or dessert for dinner, getting a "sleep in" card. Be creative! Give the gift of giving. For $22 - $28 per month, your family can "adopt" a child or a community through a charitable organization, which helps your child see how other children live. Give away good used coats and toys: let your child pick out what to share with a child less fortunate, and donate to a local church or charity. When the holiday arrives, talk to you child about how happy he or she has made someone else.
This is the true spirit of the holidays, isn't it?