Growing up my family was poor. My parents had little money to buy presents and sometimes we thought we were getting nothing until the last minute. There were 8 of us kids and my parents had it rough.
My dad and mom figure out a plan that was so good we used if a number of times with our kids. They purchased stocking stuff and a gift and gave us each $15 ( a lot for them) and took us to the store Christmas eve. We went nuts trying to decide what we wanted for our money. We could buy it Christmas eve, but could not use it till Christmas day when we found it under the tree along with the present they got us and our stocking. They had a good time watching us shop and it sure made that money seem like a lot more since the stores marked things down on Christmas eve. I can remember having something in hand and then hearing what I had marked down so I could go get something else too.
Younger kids could even shop in a thrift store and be happy!
Christmas can be worked and fun even if you have little money. Don't try to keep up with the Joneses. Be creative!
More frugal ideas can be found at Biblical Womanhood.