How to have a very merry Christmas with kids for $200 or less—seriously

For as long as I can remember I’ve started to get excited about Christmas as soon as the weather began to cool and the leaves began to turn. I’ve always loved the sparkly lights and the at-home coziness of the holiday season, but the day itself has taken on a new significance now that I have children.

Over the past few years I’ve loved seeing my son’s eyes light up as he opened his presents and, each year, wooed by holiday ads and the thought of my child’s smile, I’ve ended up spending a lot more than I intended.

This year, out of necessity, I’ve decided I’m doing things differently.

Since last Christmas, my husband and I have had a baby, taken a partially-paid maternity leave and an unpaid paternity leave, bought a new home and started our older son at a full time preschool. We’ve also made some intentional decisions about how we want our children relate to money.

The average American family is planning to spend an average of $983 for gifts this holiday season. But they don’t have to.

This Christmas, we’ve decided to opt out of going above and beyond and, instead, stick to a strict $200 budget for our little family. If you’re considering (or being pushed by circumstances) towards a budget Christmas, here’s how we have an amazing holiday together—without spending much.

The Baby

The baby will receive gifts this year mainly because it would seem suspicious for Santa not to bring him anything. As a 13-month-old, his interests are limited: he enjoys napping, nursing and getting into the kitchen cabinets. Under the tree he’ll find:

A television remote: $7

Again, not a very Instagrammable gift, but something that I know my child will love. As of now my tot totes around our real TV remote, come Christmas time he’ll have one of his very own.

A soft duck: $25

My baby is the classic second child, born in the same season as my first, he has hand-me-down everything. Almost all of my baby’s possessions, from books to clothes to toys were once used by my first. As my babe enters the phase of his life when he might become attached to a comfort object, I plan to get him a brand new and very soft stuffed duck.

A large ball: $4

A big fan of chasing and rolling, my baby will be unwrapping a brand new ball on Christmas morning.

Baby total: $36

The Preschooler

A personally curated art kit: $20.00

My preschooler loves art and, while the quality of the supplies might matter to a more seasoned artist, I’ve found that my boy simply loves the feel of paint on his fingers and the sensation of cutting paper with “real scissors.”

For less than $20, I’ve created an on-the-go art box that my boy can haul around the house and explore over the next few months. The art kit includes the box itself ($5.99) a pack of construction paper ($3.99), 3 mini-sets of paint ($2.99) a pack of paintbrushes ($1.99), markers ($2.99) and 2 pairs of silly scissors ($1.99).

A pair of character pajamas: $19.99

Pajamas are a practical gift that are also incredibly fun. My son is a big Daniel Tiger fan so he’ll be getting a trolley adorned set under the tree this year.

An E.T. Poster: $7.99

This past summer my son stayed a weekend with his grandparents and, despite our Daniel Tiger only decelerations, my parents gave in to nostalgia and let my son watch E.T. Ever since, he’s been obsessed. This Christmas he’ll be getting an E.T. poster to hang next to his bed.

A kids wheelbarrow from the neighborhood list serve: $10

While we buy a lot of our children’s clothes and supplies second-hand we typically shop new for toys simply because it can be really hard to find what you want. This year we started looking early and scored an almost-new wheelbarrow that my boy will love.

A set of pre-cut 2×4’s: $8

My son loves to build in the backyard and, as un-instagrammable as plain old 2x4s are, I know my boy will be thrilled to have something he can use to construct.

Two books: $12

As an avid reader, my son will be more than happy to receive a couple of new books he can read with me or my husband and that he can flip through as he drifts off to sleep.

A “movie night” bundle: $2

At our house, movie nights are a real treat. This Christmas we’ll be gifting my son a movie night by wrapping up a bag of microwave popcorn, a hand drawn movie ticket and a pack of Sweedish Fish.

A flashlight: $2

While a flashlight might not seem exciting to a grown up, to a preschooler it’s the key to after-dark adventure. I know my son will be thrilled opening up this gift and look forward to hours spent reading under the covers and creating shadow-puppet shows on his bedroom wall.

Preschooler total: $82

The mom and dad:

While it’s always nice to receive a little something, my husband and I typically buy what we need for ourselves and aren’t big spenders. This year, because we had a few major expenses, we’re opting out of getting each other anything big and, instead opting for a few small gifts.

A Handprint ornament for each child: $6

We love honoring our kids and plan to make handprint ornaments as gifts to each other. In the future I’m sure we’ll look back at their tiny hands and wonder how our sons ever used to be so small.

Two $10 Chipotle gift cards: $20

Throughout the week my husband and I each pack our lunch for work. Giving each other gift cards is really giving the gift of being lazy one evening and skipping the chore of packing lunch.

A gift card to the movie theater $26

Date nights are hard to come by in our house but, because we have full time childcare for both of our kids, afternoon dates are a little more possible. A gift card to the movie theater will give us the chance to sneak out of work a couple of hours early and head to a matinee showing.

Assorted teas: $15

My husband enjoys hot tea each evening and, this year, I’ll shop for an assortment of teas he may not yet have tried yet.

Assorted chocolates: $15

As the chocolate lover of the family, I’m counting on my husband to pick up a few nice truffles from the local chocolate shop.

The mom and dad Total: $82 (split)

Holiday Cheer (free)

While presents are fun, we all know that the holidays are really about spending time with the people we love the most.

This winter, we’ll work hard to create holiday magic without breaking the bank by planning ahead and engaging the resources we already have. As the holiday’s approach we’ll:

Listen to holiday music

Nothing says “Christmas” like the jingle of familiar music. This year we’ll sing along to the classics on our favorite Pandora station as we wrap gifts, bake cookies and decorate our tree.

Check out the local lights

Some of my favorite childhood memories involved peering at Christmas lights from the back of my parent’s car as we cruised around town and sipped on vanilla milkshakes. This year, I’ll map out the best displays in town, suit my sons up in their pajamas and take a long cozy ride.

Create homemade holiday cards

While professionally printed holiday cards can be pricy, my family has enough art supplies lying around to create beautiful, homemade cards I’ll be proud to send out. This year I’ll let my preschooler get in on the fun by helping me paint, draw and craft our holiday notes.

Cook our holiday favorites

As the holidays approach I’ll be pulling out my grandmothers recipe cards and baking my way though her favorites. Engaging seasonal recipes won’t cost us any more than our regular groceries and will ensure our boys have cozy memories of their favorite holiday foods.

Watch the classics

This year, most popular cable channels will be showing a variety of classic holiday movies. While I’ve seen most of the classics at least a few times, I’m looking forward to watching the joy spread across my child’s face as he watches one of my old favorites.

If your family is interested in opting out of going overboard, consider setting a limit that seems reasonable and sticking to it.

In our family, the keys to our shopping success have been focusing our spending on our kids, selecting gifts that will make our kids happy (even if they don’t appear on any top-toys list) and choosing not to compare our gift piles with those of other families.