I've never heard of grab bags. We buy for all the kids in the family. In DH's family they stop buying for the kids once they reach 18 but we don't. We buy for them because they are still our neices and nephews no matter what their ages. Honesly I don't know what to tell you. Maybe reduce the $40 a kid to something more manageable. That is a lot of kids to be spending $40 each for, especially if money is tight. Even $25 a kid is still nice and you can still get them something good.