HSBC predicts that people will spend an average of £526 on Christmas this year, which includes presents, Christmas crackers and the turkey.

That's quite a significant sum of money, and people can feel obliged to spend more money than they have at Christmas.

It's the thought that counts

Here at All About Money, we have been coming up free or low-cost present ideas that would still make a loved one feel special - without breaking the bank. And very often, sentimental gifts can do this.

Look at Prince William and the expecting Duchess, Katherine. He proposed with his mother's engagement ring. That ring carried a great sentimental value and significance on all sorts of levels - that money couldn't buy.

As they say - it's the thought that counts.

Photo Album or Scrap book

Create a book of old photographs and memories of someone special who is no longer with you. Christmas often makes people think about those who are no longer with them, and appreciate the people who are.

Take a trip down memory lane and create a scrap book of photos and memorabilia of significance to you and your partner or spouse. Things that could work include the ticket from the first time you went to the cinema together, the flyer from that gig you went to together, the stub of the train ticket from your first weekend away together - you get the idea.

Or, if you have any old home movies in the attic, you could update them to DVD so everyone can watch them again.

Cooking

If you know someone who is always lumbered with cooking the Christmas lunch, then you could offer to help them out in the kitchen - offer your turkey basting expertise! Some people genuinely enjoy making Christmas lunch - others could appreciate the help.

Or, you can keep the little ones entertained, or serve everyone drinks, while they slave away in the kitchen.

You could also offer to bake a Christmas cake - or better still, a Christmas pudding! The effort you put in will be much appreciated.

Create something special

There are so many ways to be creative - in your garden, in your cooking, in your dress sense and with music and art too.

Let your creative side flow by creating something special for a loved one this Christmas - use your skills. Here are some ideas that don't need to cost a penny:

• Write a poem
• Compose a song
• Paint a picture
• Create a sculpture
• Take photos and frame them

Find value in pre-loved items

If you, or someone you know, is a fan of vintage or retro styles / music / art, then a little digging in charity shops, auction websites, or car boot sales can unearth some little gems that don't have to cost a fortune. Although remember - it needs to say 'vintage', not 'second hand'.

Knit a scarf

One day I came home from work and found a parcel delivery card from the post office. I drove down to the sorting office, in the snow, to pick up my parcel. It was freezing. I opened the parcel and it was a hand knitted scarf from my Gran. It meant a lot.

Unfortunately I managed to put it through a boil wash by accident, so now I have a scarf that would look great on a toddler. Still, it's the thought that counts.

Get a 'save jar'

It's not just kids who can save pennies in a money box. There are all kinds of money boxes, saving tins and jars - including ones which you can't open.

If you're in a relationship, saving is something you and your partner can do together - a holiday fund, a baby fund, an eloping fund…

You won't earn the interest you would with a bank, but you could always bank the money each time your money box fills up.

Could you let your sentimental side out this Christmas? Tell us about your frugal but thoughtful gift ideas on Twitter, Facebook or Google+.