We have a Christmas budget. I come from a large family and DH comes from a small family. His family is aaaalll about giving gifts.

Every knick-knacky thing you could imagine. We have tried to rein them in, without success. It's only 3-4 of them so it was easier just to cave.
My side of the family decided several years ago that we just could not keep buying for everyone. After trying the name-drawing thing(two BILs drew each other

Socks all around!) we decided to either give something "from the heart" or give to charity in their names. We do send a small gift for every child living in the home, including colege students.
Last year my "from the heart" gifts were some Outback Steakhouse gift cards that were given to me by my employer(it was an incentive thing). I had enough to give one to each of my sibs, so I taped them to a package of candy canes and shipped them off. One of my sisters made delicious homemade jams from the fruits in her garden. Another one made a donation to the Heifer Project--she bought a litter of bunnies for a poor family!

Another sister made a bunch of Christmas cookies and Chex mix, knowing we had just been through some severe health crises and I was too overwhelmed to bother. My brother didn't know what to do, so he gave me his electric roaster

I guess I must have admired it at some point.
My point is, these gifts can be very inexpensive. We give one gift per family and a small gift for each child to open. This system has worked very well for us. It is especially easy because we all live far apart from each other, so it makes shipping easier too. And on the rare occasions that we actually get to see each other at Christmas, we go shopping or go out to eat or go to the movies or go to the beach together--that's the most precious gift of all, spending time together.