Personal finance

Amid an increasingly queasy economy, half of American adults plan to slim down their Christmas, Hanukkah and Kwanzaa holiday spending this year, according to an October survey by the Consumer Reports National Research Center.

When it comes to holiday gifts this year, U.S. consumers will spend an average of $431, a 50 percent drop from a year ago, according to the annual survey by American Research Group Inc. That’s the lowest amount in 17 years.

But it doesn’t mean the holidays need to be a grim, Scrooge-like affair. Here’s how to celebrate and stay debt-free:

•Make a list. Decide whom you truly need to spend on: baby sitters, teachers, spouse, partner, kids, co-workers, friends, relatives. If the list is too long, pare it down or consider less-expensive gifts.

•Look for deals. From Target to Toys R Us, retailers are rolling out pre-holiday sales even earlier this year, so check your newspaper inserts and Web sites for discounts and coupons. Compare prices when shopping for popular items or big-ticket purchases.

•Get creative. Look for ways to give that don’t break the bank. Think about baking up a plate of cookies, bottling your favorite herb vinegar, mixing up that killer BBQ sauce your friends all crave. Hit craft stores for gifts you can make, such as scented soap, mosaic picture frames and stamped stationery. Turn a year’s worth of photos into a personalized scrapbook or make a 2009 calendar using favorite photos from this year. At some craft stores, you can find photo calendars for only $1.

Saving and cutting back on holiday spending is no small task. Several Web sites, however, offer a host of tips and advice to help consumers cope with holiday budgeting:

•American Bankers Association ( www.acbankers.org/ ABAEF/Holiday Budget.htm): Provides seven tips for developing a holiday spending plan.

•Bankrate.com ( www.bankrate.com/ brm/news/special/ 20051123a1.asp): Features insights and tips on variety of holiday spending topics, including a holiday spending worksheet.

•Federal Trade Commission ( www.ftc.gov/bcp/ edu/pubs/consumer/ alerts/alt082.shtm): Offers quick tips and feature articles devoted to smart holiday shopping.

•Family Credit Management ( www.familycredit.org/ learn/holiday savings.cfm): Offers several suggestions for developing a holiday gift spending plan.

•Financial Web ( www.finweb.com/ financial-planning/ holiday-budgeting- tips.html): Discusses ways to budget and save on holiday decorations, food and gifts.

From wire reports