Think the dollar store isn't a good place for Christmas gifts? Think again! Holiday shopping on a budget is very doable at the dollar store. While some dollar stores sell items for a buck, others sell items at relatively low prices, such as $1.99 or $4.99.

"For a few dollars and a bit of imagination, you too can purchase items from the dollar store or purchase items that you can decorate for yourself and gifts," says author Carol Gee, who shops dollar stores for items to create gifts. For example, she's given friends Christmas ornaments that look expensive, even though they're actually $1.

The ornaments "come in varied shapes and covered with sequins and gold or silver thread," she says, noting that the same ornaments can be piled in a clean glass jar and used all year as a centerpiece or some other decorative accent.

Gee says many dollar store picture frames make a great gift. They can be upgraded with spray paint or ribbons. She also stocks up on colorful Dollar Tree wine glasses, which she enhances with hot glue and bling ribbon to turn them into candle holders.

"For a friend who loves to cook, one Christmas I bought several potholders, matching dish cloths, several large, unbreakable serving spoons and a few other cooking gadgets and put (them) in a holiday bag with a bow," says Gee.

*Experiential Gifts

"It's not what you pay for a gift as much as what you do with it," says Anne Armstrong, a mom, educator and founder of My Gnome on the Roam, a brand of toys and tools that help busy families create adventures in small pockets of time.

Her gift suggestions are experiential. For example, she recommends buying popcorn movie buckets and snacks at a dollar store and then renting a movie for a fun movie night. Plan some Christmas movies for the holiday edition of movie night.

Another idea is to buy trophies at the dollar store and have a family challenge. Maybe Christmas karaoke? A Christmas cookie decorating challenge? The more competitive, the better!

"Let everyone make something or perform something or do their best trick and give awards for each," says Armstrong.

She also recommends buying an "adventure kit" at the dollar store, such as sidewalk chalk, dice, cards, jump rope and other toys. Plan adventure days during which you can create games, such as hopscotch, dice games, magic tricks with the cards and jump rope games.

*Stocking Stuffers

Stock up on toys and trinkets for gifts and stocking stuffers. For example, buy kids coloring books, Play-Doh, markers, seasonal crafts, small cars and dolls. For the adults, pick up scented candles, journals, colored pens and pencils and word search books. Hand sanitizers, lotions and sunglasses also make great stocking stuffers. Consider earbuds and headphones for the tech lovers on your Christmas list. Next, stock up on candy and snacks as well. You can even decorate your gift with candy canes and candy bars.

If you can't decide what to buy, get a gift card. Dollar General, for example, sells gift cards to many stores, restaurants and brands.

Make sure you stock up on Christmas decor and wrapping supplies, too. You can create your own holiday cards and gift tags with dollar store crafting items such as ribbon, glitter glue and felt. Or buy high end cards on a budget. Dollar Tree sells Hallmark cards for a buck (or less), and you can snag seasonal gift bags, bows and ribbons at dollar stores for a lot less than you'd pay at other retailers. It's also smart to buy storage bins to stash your holiday supplies after the season.