People can find some solace in food. The American Farm Bureau Federation says the average cost of a classic Thanksgiving meal for 10 will be $42.91, $1.70 less than last year. And cooks can turn to the Thanksgiving section of the website recessionrecip.es ("Just because times are tough doesn't mean your meat should be.").

Instead of shipping gifts to relatives in Indianapolis, Jacki and Jeff Seaman of Phoenix will bring them when they visit in January. Everybody will spend about $25 per gift, half what they paid a couple years ago.

"How much stuff do you really need?" Jacki asks.

Some employers will cut back on extravagant parties employees probably should expect more potlucks and others will be more apt to volunteer services or donate to charities in lieu of perks for employees, says Challenger, who is CEO of Challenger, Gray & Christmas.

"It's hard to celebrate in an elaborate way when you are laying people off," he says.

According to a survey by his firm, two-thirds of companies plan holiday parties, down from three-quarters in 2008.

A survey by American Express OPEN, which offers credit services to small businesses, found that 35% of small businesses will give employees gifts, down from 46% last year; 31% plan year-end bonuses, down from 44%.

Marlene Herman, owner of two Aamco Transmissions franchises in the Cleveland area, won't throw a work holiday party or give bonuses, as in the past.

Instead, she might bring in a tray of sandwiches for her 10 employees and hand out grocery or gas gift cards. She'll continue her tradition of giving each worker a Thanksgiving turkey and a Christmas ham.

"When people have no money or times are hard, you need to do things that are practical for them," she says.

Holiday-related charitable giving also may slide below last year, which was the worst in 53 years of tracking by Charity Navigator, a non-profit group that evaluates charities' financial health.