In any year, it's a good idea to be budget-conscious when shopping for Christmas gifts, but during a time of world-wide recession, it's especially important. The good news is that retail stores will be even more desperate to make sales this year, so you get to reap the benefits of that. This year's biggest tip for smart Christmas shopping is to begin your shopping EARLY, and take full advantage of the big store sales. If you plan ahead, understand when the sales are likely to happen, and have a feel for what goes on sale when, you stand a good chance of making it through the shopping season without too much hassle, and without losing too much money in the process!

Christmas in July has origins that begin in Australia (or at least that seems to be the most widely accepted tale), and it is generally not much more than a good excuse for a party or gift-giving. But the real "magic" of Christmas in July is that the retail stores have a ready-made excuse to hold a big sale. Since July is a rather dry month in terms of sales, retailers are happy to grab onto any reason to bring shoppers into the store.
This translates into your first big buying opportunity for the coming holiday season. Keep your eyes open and your ears tuned for sales that may happen during July. Some may be on July 25th, but any time of the month is likely to see a big sale happen. If your local stores aren't holding a sale, check for events near you such as arts and crafts fairs. And of course, stay tuned to online sales. Places like QVC often hold Christmas in July special sales events.
The key: Get gifts in July that aren't dependent upon being the "hot" thing for this year. "Hot items" probably won't reveal themselves this early.

August is Back To School Sale month, and this is the perfect time to shop for clothes - not just for school - but for the kids' Christmas presents as well. Of course, clothes aren't the only things that are likely to be on sale during Back To School savings events. Computers, especially laptops, are likely to be be marked down during these sales as well. And with netbooks selling for less than $300, a sale on one of those would make for a very smart, budget-conscious gift for anyone on your list: not just the kiddos.
September brings Labor Day, and now is the time to look for sales on items such as office supplies, office furniture and electronics. Best Buy and similar electronics stores almost always have big Labor Day sales. Of course, once September rolls around and Labor Day is over and done with, the real competition for holiday shopping begins in earnest.

Black Friday (the day after Thanksgiving) and Cyber Monday (the following Monday) probably don't need any introductions or explanations. Black Friday is by far the biggest shopping sales event of the year, with the stores often opening up as early as 4:00 AM to get a start on the day. And yes, shoppers are waiting outside to swarm in the moment the doors are opened. Cyber Monday, on the other hand, is the equivalent day for shopping online. If you didn't find something on Friday, or weren't brave enough to face the massive crowds, you'll likely be able to snag a great deal on Monday, by shopping online. This is when you'll want to have electronic coupons on hand whenever possible. Places like fatwallet.com and retailmenot.com can help you rack up discounts on top of discounts, so don't forget to use them!
If you shop wisely this year, and shop EARLY, you may be able to bust through economic downturns, and be able to give the items you want to give this year - without breaking the bank.