It's a recession. We are all acutely aware of that. But you have a birthday coming up for a family member or a friend and you don't want to just ignore the special occasion for the sake of keeping your wallet closed. So - how can you celebrate the occasion without feeling guilty about spending too much money?

For the past few months my husband and I have had a small amount of money automatically deposited into our online savings account on a weekly basis. It's not much but since the account is online we don't really think about it too much and I check it about once a month to see what our balance has grown to. Our goal is to save enough so that we have 6 months worth of mortgage payments in there as a safety net.

Since we started this savings plan, however, I have become compulsive about saving money and with a few birthdays coming up I am torn between putting money into the savings account and spending a little to celebrate. My conclusion is that life needs to go on even during a recession and while I won't be shopping at Tiffany's I will try to make these occasions happy and celebratory.

So - the following are just a few ways of celebrating without breaking the bank.

1. Have a Birthday Party. Now this may seem self-evident but you can plan a nice, intimate, celebratory birthday party at home and invite family and friends. A home-cooked meal, or a pot luck, and a birthday cake are all that is needed to create a memorable celebration of another year!
2. Make a Present. If you are married or have a significant other, a homemade present is always meaningful. Do you make homemade truffles? Can you write poetry? Any gift from the heart is always better than something from a store.
3. If its winter plan a sledding party. After an afternoon (or evening if there is a full moon) of sledding come inside to warm up with warm cider, hot cocoa and birthday cake. If it's summer - spend the afternoon at the lake swimming and grill hot dogs and hamburgers for everyone!
4. Have a movie night! Spend an evening snuggled on the couch watching all the Monty Python or James Bond or whatever interests you! Make a homemade pizza and pop some popcorn and you are all set!
5. If you have kids - let them have an old-fashioned sleep over. They can make ‘decorate your own pizzas' and have cake. Keep them busy with games and movies and make pancakes in the morning! Again, a memorable celebration for very little $$.

So many parents have bought into the idea that they have to rent a venue and invite everyone their child knows in order to have a meaningful birthday party. This not only drains your budget but it teaches your children that marking a special occasion can only be done right if you spend a lot of money.

Likewise for spouses and significant others. A few years ago there was a print ad for diamond rings that said that told us that we could show our love by purchasing a "not insignificant diamond." Really? Does that mean my husband doesn't love me if he can't afford to? Don't let marketing dictate how you will celebrate major life events or how you will feel if you can't afford to celebrate the way they would like you to!

These are just a few ideas - every family and every set of friends is different. I guess the point is to focus on spending time together instead of spending money on each other. Time spent together is priceless!