You have so many awesome responses that I didn't even get through all of them just yet. BUT, I wanted to tell you, we are on the same page as you. We took the Dave Ramsey class last year and are doing awesome, Dave said sometimes you have to cut this kind of stuff out, and with regard to distant relatives, I spoke to all of them, and explained that we were not going to exchange gifts anymore, we were still getting together, etc., but not gifts. My younger relatives agreed and were so happy and were glad that I brought this up, maybe we all were kind of in the same boat financially. My older relatives were not happy about this, and gave us a hard time, but as the second year is approaching, I think it may be a little easier, perhaps the first year is hardest for them to accept. So, with regard to the others, I just do gift cards to Target for Teachers between $10 - $15 each, done, and than we only exchange gifts with immediate family, my dad, brother and my kids, and we put a small cap on that as well. My kids are young, so I go to resale shops, garage sales and school resales to find their Christmas gifts. They are too young to know they are not getting something new. Again, love all the below ideas! What great responses :) Good luck! PS I have a friend who keeps a little notebook in her purse, and when someone says to her, I wish I had this, etc., she notes it down, and when it is time to get a gift for that person, she refers back to it... :)