Holiday events can put an immense strain on all of us where gift giving is concerned. With situations like Christmas where gifts are opened in front of a crowd, some people feel put under pressure from to get the perfect gift and to make it a showy one too. That's not to mention the financial burden that Christmas presents.

We have all done this I'm sure and, although this is a common way to go about gift giving, if it is not appropriate to your personal budget do not feel obliged to act in this manner. No matter whom you are buying for, basic etiquette in present buying suggests that a cheaper gift given with love and consideration for the recipient is not only more appropriate but will often be better received.

After all, there's nothing worse than shelling out for an expensive present for someone and then never seeing it in use, worn or on display. If the person you gave the expensive and 'tasteful' painting to did not like it, for example, you will never see it on their wall, and you be left with less to spend and feeling disappointed that your gift was not well received.

Look at your list and consider who are the people you are closest to and who are important but whom you do not see so often. This is a good way of figuring out whom to spend what on. For close family members and close friends set a higher figure than for those you do not see so often but stick to your budget. No matter how much you think they'd like the latest plasma screen telly, if your budget doesn't allow for it consider a more realistic alternative.

No one wants to pay for gifts for months after the event, so try not to buy on credit unless you know you can pay it off sooner rather than later. This is one of the best ways to budget - although it may be unrealistic for some to not resort to credit at times such as Christmas. Again set a clear budget and plan how you can repay this money in advance - it will save you stress and extra cash in the long run.

A good way to budget for every person you are buying for is to think of hobbies and interests that appeal to their tastes. It is more likely they'll enjoy something that costs less but speaks to them; a gift that reflects who they are, which fits into a set budget will satisfy both parties much better than an expensive and inappropriate one. And if they don't have any obvious hobbies, you can find unusual gift ideas at sites such as Notonthehighstreet who specialise in gifts that are a little bit different.

If you have a very tight budget, get creative and make something that reflects how you feel about that person; perhaps you could send flowers. A small bouquet from somewhere like interflora along with a handmade card can go a long way to making someone feel special without breaking the bank.