IF you are VERY good at paying off credit cards monthly (one of my few strong suits), I have found that a cash back rewards card can make Christmas, essentially, free. For example, in our family we draw names, so each person only has to buy one nice gift for one other family member (other gifts are optional). I run my groceries through my Discover, and also larger bills, like tuition. Pay it off (this is KEY!!), then, for example, since I drew my sis-in-law last year, and she wanted a nice pair of new slippers for her tiny feet, I went and got the "Double" reward gift card for Land's End from Discover, and bought her some very nice slippers. I would have spent the tuition and grocery $$ anyway, so I saw her gift as free (budget wise). Of course, I still have to be savvy in my purchases to make the cash back stretch, but it's been a good way for me to go!