Most people would agree that times have been tough and their cash flow is tight. We’re willing to sacrifice to save money in most areas, but when it comes to our friends we certainly don’t want to be stingy. So, what do you do when you’re invited to a birthday party or a baby shower if you don’t have the means to splurge?

1. Decide if you really want to go to the party. Don’t feel obligated to purchase a gift for everyone who invites you, and if you really don’t want to go to the baby shower then don’t. I know, it sounds easier than it is. But you have to consider where your funds and your free time will be spent.
2. Give your talents as a gift. Are you an outstanding photographer? Give your friend a free photo shoot for their family Christmas card. Do you like to babysit? Offer free babysitting to a friend with young children. Be creative and think of things that you can uniquely offer.
3. Get the kids in on the plan, too. Children are invited to loads of parties each year and it can really add up. Stock up on fun items as you see them go on sale and stash them away for the next party invitation that comes your way. Kids can also give the gift of movie nights at your home (make extra buttery popcorn, hand out tickets, and dress up for the premier), or a day at the home spa (and do manicures and pedicures). Be creative and think of the time you’ll save not going from store to store looking for a gift.
4. Buy a gift card – creatively. One year, on my birthday, a good friend gave me a $10 Dairy Queen gift card. She knew about my non-so-secret-addiction to M&M Blizzards and treated me to my guilty pleasure. It was the one of the most thoughtful giftcards I’d received because it was proof she really knew what made me tick and every time I used it (atleast three times) I thought of her generosity.

Question: What frugal but fabulous gift giving ideas do you have?