Do shop at the bulk food store. They have a great selection of baking supplies and generally lower prices, and you can buy just what you need and no more.
Do bake with buddies. Have a baking bee where everyone chips in on the cost of ingredients and then goes home with a share of the goodies. Bonus: You aren't left at home with mountains of cookies and squares begging to be eaten. Put a pot of mulled wine or cider on the stove, crank up the cheesy Christmas tunes and you've got a party.
Do use no-name ingredients where you can. OK, if chocolate is the star of the show, splash out on the good stuff. But for flour, butter, baking soda and so on, either go bulk or go cheap.
Do search for wartime and Depression-era recipes. They were created in a time when people were being rationed or just going without, so they're naturally inexpensive to make.
Don't buy premade icing, mixes or baking kits. Those little tubes of coloured icing look like fun, but the price (not to mention the ingredient list) is scary. Making icing is too easy for that.
Do cut corners. Don't want to invest in a piping bag and tip set? Snip a tiny corner off a durable freezer bag -- it's instant decorating fun.
Do visit thrifts shops for fun, seasonal cookie jars, tins, baskets or mugs. They make cookie gifting affordable, individual and really special. You'll also be able to pick up cookie sheets and other bakeware for pennies.
Do go rustic. A simple roll of butcher's or garden twine is lovely tied up around a gift of homemade cookies, and way cheaper than fancy ribbon. Same goes for paper or fabrics. Look for brown paper or little off cuts of funky fabrics, and skip the expensive packaging.
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