We do it with my family. It works great because between the 10 adults we only spend £20 (on one person). Christmas used to be very expensive even spending a small amount on a token gift for everyone.
Only issue is, DHs family like spending obscene amounts on presents for the adults. There are only 7 of us when at theirs for Christmas eve (day of present exchange) but it all adds up. Sister and aunt/uncle are child free. And either living at home or with very good job. Parents are mortgage free and definitely stashing cash in the kitchen cupboard so they have plenty of money. We aren't well off (one income, 2 children). We all had a discussion about no presents last year, turned up, and everyone had spent loads of everyone else secretly. We obviously bought nothing for anyone else and it was incredibly awkward, you could see they felt hurt we hadn't "bothered".
How do I approach this? Clearly they value the gift giving part of Xmas but we just can't afford it.
WIBU to just put my foot down and say no gifts this year and have a frank convo about it or secret santa! Or let them get on with it and just buy nothing for them? Isn't that impolite?