That’s a blow op. And really hard timing.
We found ourselves on the bones of our arse, when our dc were young and had to completely strip back our Christmas spending.
It was one of our loveliest Christmases, and we made new traditions that we kept, even when things got better for us financially.
We did lots of crafts - making gingerbread man chains out of brown paper, and a washing line of santas clothes (cutting and colouring). Everyone got biscuits and chocolate treats that year, packaged in boxes that the dc decorated. The dc loved baking and making and were so excited about delivering those gifts.
Don’t be embarrassed into spending on gifts for adults- anyone who is close enough to get a gift, should be understanding. Just be upfront about it sooner than later.
I packed out their stockings out with an orange in the toe (to squeeze for juice for breakfast) character colouring sheets and puzzle pages that I had downloaded for free, and a decorated Pringles tube filled with coloured scented playdough You can find all sorts of ideas and free things online. Set up price alerts on camel camel for anything that’s a must-buy to see when the price drops on Amazon (and which reductions are genuine bargains).
We went on nature walks and round our neighbourhood to see light shows, and watched the sunrise on the solstice.
I didn’t let them see tv ads for toys because it’s hard to compete with those, and built excitement for the gifts that I had bought for them. Young dc are easily influenced!
Charity shops are absolutely great this time of year - too good actually, so you need to be very disciplined. Make a list and stick to it. It’s also a good time to sell stuff if it’s time for a clear out.
You could make a princess dress up kit with charity shop bits and some imagination.