My husband and I make a conscious effort not to over indulge the kids just because it's the holiday season. I also think it's a lot easier when your kids are still young. My eldest who is 4-years old was definitely impacted by all the toy tv ads this season. I just told her that she make out a wish list but she may only end up with a couple of things on the list. As far as holiday spending on social events... we try to take part in events that are free. Everything from local tree lighting ceremonies downtown to local school holiday performances. I think children care more about having fun with their friends and family - and as long as they're having fun and feeling the love cutting back doesn't make much a difference.

I agree that over-indulging with presents for kids isn't necessary. I think LizzieBtv has a great point about enjoying Christmas by attending the fun activities. It's easy for us since our kids are really little, but we're going with one present each this year, and maybe do a few presents a piece when they're pre-k age. We hope to give them the best of both worlds by giving them each a couple things to unwrap on Christmas in the coming years, and also by taking them to participate in giving to the toy drives for foster children and Children's Hospital. Hopefully, by including them on the side of getting to be the "giver", they will enjoy their Christmas with their few presents for themselves, and by learning about how much fun it is to give to kids who aren't as fortunate as they are.

If completely skipping Christmas is scaling back...then yes, I'm scaling back.  The past year has been a financial nightmare...mostly because my former employer stuck me with $3,000 of her debt on my credit card and closed her business still owing me $8,000 in wages.  My next employer also owes me back wages.  My new employer is wonderful but the salary doesn't pay my mortgage.  Since the banks are in charge of whether or not loans get modified, they are making damn sure that NO loans get modified!  I know, I spent 8 months trying and was turned down twice!  So Christmas is simply going to be like any other day in my house.  No lights, no decorations, no presents, no nothing.  It breaks my heart to have to cancel Christmas for my boys, but luckily they are great kids and very understanding of the current economic crisis.

We are scaling back a lot this year. I've been unemployed since September and although my husband has a job, his paycheck basically pays the bills (so I'm glad for that). I just had major surgery last week (which is going to delay my employment and took more money away from Christmas). Luckily my children are very understanding and I've asked them what they want and know that by giving each of them one gift, they will be happy. We still have the lights (although scaled that back) and we still have the tree. I did baking before my surgery and they love helping with that. I know I'll have more money after Christmas so perhaps I'll buy something for the family as a whole during the sales later. The most important part is that we do celebrate Christmas and the meaning of it and get together with friends and family in some way.