Re: $5,000 Christmas
I would say I spend around $800 or so each year on Christmas, maybe even less.
I come from a large family (7 boys) and we used to all buy presents for each other, the spouses, the kids. About 10 years ago, we finally went to a family grab bag idea where the adults would draw a name and buy one present for that person somewhere in the $50-60 range. It works out so much better. Everyone gets something of value, instead of a bunch of $10 items like before.
We still buy presents for the kids, after all, it really is for them.
I also buy presents for a best friend from college, her spouse, and two kids.
My other expenses include: new decorations around the house, Christmas cards, postage, one or two new Christmas CD's, a donation to a needy family either through work or community, and a donation to the Salvation Army bell ringers.
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