I started cutting back and doing the three gifts thing three years ago when DD was still small enough to not notice. I knew it was time to cut back when I was embarassed for other relatives to come over and see all the stuff she got but really didn't need. My mother and brother and sister also buy too much for my kids and that adds to it. This was easier to do when they were small and I could buy Little Tykes and Fisher Price for almost nothing at Kohls.
I do buy things for my kids throughout the year, but I also do so frugally. I buy the movies we want when they come out (because they are cheaper then) but the kids usually don't get them until a long car ride or snow day or other special event. They also have a lot of hand-me-down big toys (like Little Tykes stuff) from their cousin, so I've been lucky that way. DD usually asks for just one or two items. Santa brings those and then an item she didn't ask for - makes the magic more special. She also gets a stocking stuffed with small goodies and usually a DVD. Mom and dad give clothes and books, and while DD loves the books, last year she opened a pair of pants and said, "oh, clothes, just what I didn't want."
When I was a child, my parents bought us more for Christmas, but we didn't get much the rest of the year. My mom also used to make herself crazy trying to have equal # of presents and equal value, so the packages kept piling up. My kids have no problem with the three gifts. I also don't feel the need to compete with neighbors and friends for "stuff."
I want my kids to have a balanced Christmas, focusing on the celebration of the birth of Jesus, family, and yes, Santa too.
This ended up being a bit of a ramble, but I hope it helped explain why some of us might try to do more with less.
