It is hard sometimes I agree. We don't have much money, but we have enough. We also have a budget and we stick to it... sometimes it takes a lot of thought to come up with something that they will enjoy but that also fits the budget. For us, Christmas is all about an expression of love and so the gift giving is just an extension of that (mind you, some of the gifts cost $0).

Even if you plan not to give physical gifts, perhaps there's some other way of expressing love and value to your family? Maybe take the time to sit down and write a letter mentioning all the things you appreciate about them, and their characteristics that you admire (leave out those less admirable )

And I don't think you should be thought any less of (by your relatives) if you have a year where you can't afford to give physical gifts... afterall, the reason behind giving is not so you can get something in return.

I hope you can work something out.