1. Borrow a stack of DVDs from the local library.
You'll have enough movies to keep the grandchildren entertained for hours without spending a dime.
2. Set up a playroom with used toys.
Purchase them from the local Goodwill or The Salvation Army store. (Take a few minutes to scrub the toys; a spritz of disinfectant doesn't hurt either.) Afterward, donate them back to a charity and get a receipt; you can claim the donation as a tax deduction.
3. Play a white-elephant game.
Karen Hoxmeier, founder of mybargainbuddy.com, says each person brings an inexpensive, fun, wrapped gift. Then, everyone draws a number and takes turns choosing one present from the pile. Players can open a gift or "steal" someone else's and that player gets another turn. This goes on until everyone has a present. If you suspect that your grandkids may fight, skip the stealing part of the game.
4. Get together for a gift-making party.
The experts at The American Specialty Toy Retailing Association (astratoy.org) suggest picking up inexpensive craft kits at your local toy or crafts store.
5. Plan a scavenger hunt.
Hide toys from the dollar store around the house, write out a clue sheet, and let the grandkids hunt for toy treasures. It will keep the little ones busy and get double-duty out of the presents that you were going to buy anyway!
Find more tips on penny-pinching in our Monday Money Savers.
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