Retirement: Low-cost holiday gift ideas

No one wants to be perceived as a Scrooge during the holidays, but gift giving can get way out of hand.

"A lot of people don't want or need more stuff, and they don't want to spend more money on stuff," says consumer psychologist Kit Yarrow, 55, author of Decoding the New Consumer Mind. As a research consultant and professor emeritus, Yarrow has interviewed thousands of consumers, including retirees.

There is a lot of sentimentality out there about gifts, but there is also a lot of waste, with people giving and receiving gifts that they end up throwing out or giving to Goodwill, she says. "Most of the retirees I've spoken with don't mind spending money, but they do mind wasting money."

The malls are crazy busy at this time of year, and some retirees may not want to go near them, says retail consultant Brian Kelly, founder of Brian Brands in Chicago. He suggests that those people consider giving the gift of time. They can donate some of their time to a charity, neighbors, friends, their children or grandchildren.

Here are Yarrow and Kelly's ideas for smart holiday gift giving on a budget:

• Cut down your holiday list. Look at the list of people you give presents to, and see if it's time to take some of them off the list. "It's painful to do because if someone has made it to the list, obviously you care about them. But I think many people will be flat-out relieved to be off the list, because if you give them a gift then they think they have to give you one in return," Yarrow says.

That's happened to her. "My best girlfriend said to me, "I hope you're not planning to get me anything, because I don't want to add anybody else to my list."

Retirement is a perfect time to trim down your list, because many people realize that many retirees are on fixed income, she says.

Before you take anyone off your list, talk to them or write them a letter and let them know that you still care about them but are trying to simplify the holidays. "You can say, 'I love you, and I know you love me, but let's not do gifts this year,'" Yarrow says.

She also suggests crossing people off your list if they don't seem to appreciate your gifts or even acknowledge that they received them.

• Consider giving away family heirlooms or sentimental keepsakes.

Some retirees have possessions they are no longer using that are rich in sentimental value such as a family Bible, books, china, silver, furniture or jewelry. Consider giving those away to someone who might enjoy them, Yarrow says. The key to doing this is to ask people if they might like the gift before you give it to them.

The present can be simple. She says her grandmother gave her and her sister her a secret recipe for stuffed grape leaves — something they both treasure.

Kelly loves giving away some of his own collectible books. To make the present really special, you can put an inscription or photo inside the book, he says.

Another idea: "If you know someone who treasures the giant bowl you put mashed potatoes in during the holidays, the platter you put the turkey on or other special serving items that have been in the family for a long time," then give them away to someone you know who likes them, Kelly says. Reassure them that you want to pass them on to their family, he says.

• Give to charity instead of buying gifts. You can suggest to friends and family that instead of spending money on each other, you make donations to a foundation, a charity, someone's college education or a family in need, Yarrow says. Or you could suggest to family or friends that you spend time together instead of money on each other.

Kelly agrees this is a good idea because there are so many people in need in this country and around the world. Many retirees appreciate the opportunity to give back, he says.

• Write down pearls of wisdom. Kelly suggests writing down pithy quotes, witty insights or common phrases used by your family and giving those as a thoughtful gift. To make it even more special, you could have someone who does calligraphy write it out or do the calligraphy yourself.

• Share your time and talent. If you know how to do something that someone else can't do, that is one of the most valuable commodities, Yarrow says. You might offer to create a photo album, do a home improvement, make a meal, babysit or create a website for them.

Yarrow has a friend who hates to wrap presents, so Yarrow does it for her every holiday season. "I bring the wrapping paper and the ribbon and spend the whole day wrapping for her. I'm happy to give that gift to people."

Kelly suggests that people who have expertise in finance and setting up family budgets offer their help to family and friends as a holiday gift.

• Host a white elephant gift-exchange party. This is usually a party where people give away presents they were given that they don't want or like, Yarrow says. Sometimes guests can take gifts from each other during the exchange to add to the humor of the party, she says. "My book club does this every year. The fun part is seeing all the really weird stuff that people have given as gifts.

"One year we had a lot of really unattractive sweaters going around. I got an ornament one time that everyone else thought was tacky, but I really love and have in the center of my tree," Yarrow says.

"This is perfect for people who are retirement age, because most people probably have a gift drawer of things they haven't used. If not, you can pick out something at Goodwill."