I'm in the same position.
I told my family/relatives.... that we simply cannot... do an all out Christmas/gifts. We are not even doing our usual photo Christmas cards this year. I told my friends too.
Its fine.
MANY people are budget strapped too.
Just concentrate on your kids.
Me and Hubby are not even getting each other Christmas gifts this year.
I did my Christmas shopping already. I buy things on sale.... throughout the year. I keep it under a certain dollar amount.
Put it this way... SURE I would like to give my relatives/family/friends great gifts.... BUT I am NOT going to go into debt for it. Because then THAT will affect my family... and what we can manage or afford or not, even after the Holidays are over.
Even making things home-made can cost money... because then you have to buy all the things to make it. In the first place. So that can add up too.
Just shop smart... and KEEP to a certain dollar amount. Shop sales... dollar stores etc.
Old Navy, Amazon, even E-bay has good sales now. AND free shipping.
I got GOOD useful gifts from there that were $10 and under.
all the best,
Susan