Save Money on Thanksgiving Dinner

Thanksgiving dinner doesn't have to break the bank. In fact, the average cost of a holiday meal for 10 is just $43.37, according to the latest American Farm Bureau survey. That's down from two years ago, when Thanksgiving dinner totaled $44.61, on average. Turkeys, green peas and stuffing are cheaper this year compared with 2009. (See chart below.)

Perhaps the simplest way to cut the cost of Thanksgiving dinner is to rein in the number of dishes you serve. "People typically overspend on Thanksgiving," says Kit Yarrow, a consumer psychologist and professor at Golden Gate University. "The more different dishes prepared, the more money spent."

While Thanksgiving meals are traditionally about abundance, in tough economic times focusing on a couple of side dishes to go along with the turkey is a surefire way to reduce your grocery bill. Pick recipes that require just a few common ingredients that you probably already have in the house. Avoid complicated casserole and side dishes that call for expensive, exotic spices like saffron.

Skipping appetizers is a good penny-pinching strategy, too. Since it's a given that diners will stuff themselves on the main course, avoid the effort and expense of preparing costly canapés. Alternatively, ask guests to bring apps (or dessert or wine). That not only eases your financial burden but also makes your guests feel like they're contributing to the success of the holiday gathering.

The Cost of a Thanksgiving Dinner

Source: American Farm Bureau

Now, let's talk turkey, probably the single most expensive item on your holiday menu. Despite the foodie hype surrounding "fresh" turkey, a frozen bird tastes the same and saves you a lot of money. Stephanie Nelson, founder of CouponMom.com, says a frozen turkey costs about half the price per pound compared with a fresh turkey.