Wowsa! This is eye-opening.
I think I spent a total of $500 (probably less) on my family (hubs, 2 littles), grandparents, cousins, teachers, etc.
I shop year round, black Friday, and make lots of personalized items. I made personalized calendars for all siblings, and grandparents for about $10 total (thank you Snapfish).
One of my MIL's admitted that she was used to spending $9K on Christmas a year. (I nearly soiled myself - that's the price of a car!) The recession hit them hard. I'm glad I no longer get $400 worth of presents from them when all I can give is baked goods and family calendars.
My oldest daughter saves coins through the year and that is her shopping money for her sister, me and Dad. I think there is about $30 total. Perfect. When baby sister gets bigger, we'll make sure there are more coins in there and it will be split between them.