I am planning a low-budget, potluck-style Christmas party to spend time with friends without overspending

• I am organizing a low-budget, potluck Christmas party to prioritize time with friends.
• My Bay Area friends are mostly Gen Z and young millennials with limited financial means.
• We are keeping costs low: using secondhand decor and preparing homemade dishes, with a sustainable gift exchange.

Let's face it: Gen Z is not doing as financially well as other generations, so I planned my holiday party accordingly.

My social circle mainly consists of Gen Zers and young millennials who are early-career professionals, first-generation immigrants, pursuing further education, or raising small children. We also happen to live in the California Bay Area, where the median income of over $120,000.

Being frugal doesn't mean we cannot have a great Christmas gathering. It just means we have to reset our expectations and values, and prioritize what matters the most to us: time with each other.

The plan

For the size of my small loft apartment, I decided that eight guests would be the maximum number the space could comfortably accommodate.

I also decided to have the gathering on the night of December 25 so that I have the day off to prepare.

As for the itinerary, the plan is to start with a potluck, then proceed to some mulled wine making if we have enough ingredients to do it on the spot, and conclude the night with an optional gift and ornament exchange. The personal budget I've set for myself is around $100, which includes decor, food, and a gift.

To make my space more festive, I bought a four-foot-tall white Christmas tree with built-in lights for $25 on Facebook Marketplace, and another $12 string of lights at an antique store. I broke out a box of ceramic ornaments I have slowly collected over the years, and added a few new ones I came across at a flea market, including a glass mushroom, a ceramic bear, and a crochet cat.

The potluck

If the thought of being a party host — feeding everyone and the subsequent clean-up — fills you with dread, a potluck may be the answer.

At a potluck-style gathering, it becomes our collective responsibility to feed one another. We don't all have the same cultural background, so this also becomes an excellent opportunity to try each other's food. I know that my Tibetan friend will show up with butter tea and momo, while my friend from Yunnan, China, will bring rice noodles in a delicious lamb broth. For friends who are not great at cooking, they have volunteered to supply beverages, bring additional utensils, and assist with cleanup.

As for me, I will continue my mom's tradition of making cinnamon rolls for Christmas by following a New York Times Cooking recipe, modified with less sugar to suit my health-conscious friends. Meanwhile, my partner will make fall-off-the-bone pork ribs, alongside some mashed potatoes.

Mulled wine is also on the menu, because most of us live in the city and won't be driving.

The gift exchange

I don't consider gifts the most essential part of Christmas, but it is always fun to receive something to remember the occasion by. Yet, coming up with gifts could be a source of financial stress, and it could also be wasteful since a lot of cheap, low-quality gifts quickly become unwanted and discarded.

To keep the gift exchange sustainable and budget-friendly, I have encouraged everyone to choose vintage, handmade, and secondhand items that are affordable and have withstood the test of time. Since the exchange is by draw, the stakes are low, and it is not hard to find crowd-pleasing items at the thrift store, like a photo book for the coffee table, a unique pottery mug, or a pair of crystal wine glasses.

I also told my guests that they can feel free to bring a Christmas tree ornament that represents what they love for an optional exchange, where everyone gives and takes an ornament from a box.

The gift I prepared is a vintage laundry bag from the '90s, featuring plaid edges with hand-embroidered flowers and a girl in a dress. I got it at a thrift store for only $2, and now one of my friends may feel more motivated to do their laundry in the future, as they can do it in style.

As for gifts for the host, I told my guests that I don't need anything, but my fluffy professional entertainers would appreciate a tip — my very social Siberian cat and orange foster kitten would really like some treats.