Planning a big Christmas shindig can be both exhilarating and exhausting. When money is tight, finding a way to make the holiday fun and frugal can take on the proportions of trying to climb Mount Everest. 

Thankfully, there are many ways to enjoy this second-most popular holiday without breaking your budget. With dinner and other holiday festivities to consider, a little planning can go a long way in creating an affordable, satisfying experience for your entire group. 

If you're short on time and money, we've got you covered with some of our favorite frugality-inspired ideas to help you have a delightful Christmas. So grab a pen and paper to write down your favorites and get busy creating your next holiday memories. 

1. Ugly Sweaters

Who doesn't love a cringe-worthy Christmas sweater? Beat back the cold this year with your very own, one-of-a-kind, horrid Christmas-themed ugly sweater. You can even hold a contest to see who can make the ugliest ugly sweater. 

No matter how you cut it, creating ugly sweaters with a Christmas theme is sure to get lots of laughs and build unbeatable memories. You can also hit your local thrift shops to get your sweaters on the cheap and support your local community. 

2. White Elephant Secret Santa

The first time I got a white elephant gift, the half-used bottle of cheap perfume amused me. I think I wrapped up a few mismatched (but still useable) socks as my gift. 

Doing a white elephant version of Secret Santa can be a fun and frugal holiday starter leading up to the present time. It gives adults and children something fun to occupy their time and creates lasting memories that will have you laughing through the night. 

3. Cookies and Cocoa

There is nothing like a well-made cup of hot cocoa on Christmas (even if it doesn't snow). When I was little, my mother loved to bake sugar cookies that we would decorate with frosting. These sweet treats are a perfect partner to a cup of homemade cocoa and will delight everyone in your crew, from the youngest munchers to Grandpa Joe. 

This delectable Christmas treat is also adaptable if you have anyone visiting who is lactose intolerant or maybe on a sugar-free diet. You can create cocoa recipes and cookies that use a lactose or sugar substitute so no one feels left out. If you are on a time crunch, you can make the cookies and cocoa mix ahead of time, so anyone needing to stop by for just a moment can still enjoy a delightful Christmas tradition your family and friends are sure to love. 

4. Christmas Movie Tradition

When I was little, my family would sit down to watch two Christmas movies that are now as much a part of my Christmas holiday as dinner and pie. It's a Wonderful Life and National Lampoon's Christmas Vacation are easily my favorite Christmas movies and are first on our list of watchable films once the holiday season kicks in. 

After we've satisfied our need for sentiment and laughter, we move on to newer-ish movies like Santa Claus and Bad Santa to cater to more laughter and the more adult set in our family. We also throw in classics like Rudolph the Red-nosed Reindeer and Frosty the Snowman for our younger viewers. No matter how you slice up your holiday watch list, finding movies your family loves to watch over and over again during the holidays can become a tradition that everyone looks forward to year after year. 

5. Sharing is Caring

It's cliche, I know. However, giving the gift of sharing is one tradition you will grow to enjoy through the years. Whether you volunteer at a local shelter, dress up as Santa for the children at your local church, visit an orphanage to deliver toys, or pick a child's name from a giving tree to purchase presents for, there are so many ways to give back. 

As a child, I was the recipient of more than one round of presents someone purchased on my behalf, and I can tell you that it makes a huge difference (even after you know about Santa.) The gifts are a reminder that people care and that the world still has so much good to offer. 

6. Christmas Scavengers

I love a good seek and find, no matter the occasion. However, there is something special about a Christmas-inspired scavenger hunt. You can use old toys or small, pre-wrapped treats or anything you enjoy as the objects people have to find. 

Prizes can range from gift cards and cash to bottles of wine or event tickets. It's all about the details that go into making this family-fun activity memorable. If you're looking to make it frugal and fun, make some homemade candles or spa sets, man-bags full of treats, or some other notable gift as prizes for people to win, and this will certainly become a tradition your family looks forward to all year long. 

7. Stocking Exchange

Anyone who's bought a Christmas present in the past knows how expensive they can get. When my nephews and nieces started coming along, the adults in my family bought for the children and drew one adult's name from a hat. This distinction cut down on expenses and ensured everyone got a present without breaking the bank. 

If your family likes surprises but has a budget to stick to, you could always fill stockings with smaller presents and goodies and then exchange them on Christmas morning. Drawing names from a hat here would also benefit the giver, who'd know what to get for whomever they were exchanging stockings with. 

8. Homemade Advent Calendar

Whether you like to do things solo or as a group, making your own advent calendar is a great way to spend some holiday time. One of the great things about this activity is that you can customize your calendar however you like. 

If you have a sweet tooth, you can place a treat on each day. If you're crafty, you can place a thread bobbin or other crafting pieces for each day. No matter your personal touch, advent calendars are a perfect way to personalize your holiday countdown. 

9. Letters to Santa

If you have a slew of little ones who need something to occupy their time, set up a letter-writing station for them to enjoy. Construction paper, plain printer paper, scissors, glitter, and glue can make for a fun time that allows them to use their creativity and imagination. 

It also allows school-aged children to work on their sentence structure and paragraph formations to express their deepest desires for Christmas and what they want Santa to deliver for the holiday. It also gives parents a peek into what their children may want but don't want to ask for to celebrate the holiday. 

10. Caroling

Even if you can't sing, getting a group of friends and family together to go caroling during the holiday season is a fun way to spend an afternoon. Make a list of two or three songs everyone knows, and then simply walk around your neighborhood singing. 

You'll have a great time, and if neighbors come to their doors to listen, you can stop and give them a special performance. Music and singing are good for the soul, and brightening a neighbor's day only adds to the sweetness of the holiday season. 

11. Holiday To-Dos

Bucket lists become especially fun during the holidays. You can write down different activities you like to do and places you'd like to see before the holidays pass. Maybe you'd like to visit someone you don't see often. 

Perhaps you'd like to volunteer more or donate gifts to people in need. Maybe you want to bless a particular family in your community for Christmas. Whatever it is you'd like to do, write down items on paper and then check them off as you accomplish them. Making a holiday bucket list is a fun way to fulfill your holiday-inspired to-do list without killing the Christmas spirit. 

12. Christmas Concerts

For those who like going out during the holidays, many schools, colleges, and churches perform free holiday concerts. Christmas Eve services are also wildly popular during the holiday season, and Christmas potlucks may also be readily available to the public. 

No matter what sort of concert you like to attend, come prepared for lots of Christmas-inspired music, stories, plays, and the like to help you and yours celebrate the holiday spirit and get in the festive mood for Christmas. 

13. Sledding

When I was growing up, we had a huge and very popular sledding hill near my friends' home. We would often go sled until we were next to frozen and return to her house for perfect hot cocoa—full disclosure: the hot cocoa could have been terrible, and it would have tasted like heaven. 

If you don't happen to live where there's snow and the weather is warm enough, you can make a slippery slope and “sled” down on tarps to get that same fun “flying” feeling. No matter where you call home, hot cocoa is always an appropriate post-sledding beverage to enjoy, especially during the holidays. So enjoy the sledding and the hot cocoa en masse.