Also, gift experiences! Going to the woods with your child, teaching them how to knit, helping them redecorate their room (move furniture around, etc) are gifts many kids will remember for a long time, especially if you have to work long hours your time is the best gift you can give them.

Think simple. We had some new toys in my classroom for Christmas (first/second grade), the things they spent the most time with was a big cardboard box, pencils and the back of old assignments and the wooden building blocks we have. Building blocks can be expensive, but clean, saved garbage and material scraps, some pens, tape and scissors make for a great time tinkering and building that many kids love. You can try asking shops that sell big appliances for boxes (they usually want to get rid of them and want to give them away for free) as well.

Theres also organizations that help to get children Christmas and birthday gifts, don't be ashamed of asking them for help. They exist so kids can get the gifts they want, and they're usually glad to help even if you don't qualify for their specific organization.

Depends a lot on the family. Some people are really anxious about how others react to their gifts or afraid they won't react appropriately, in that case everyone being distracted with their own presents helps. If you have children that still believe in Santa, this is a bad idea for obvious reasons.

Do it if you think it works, bur thing about the implications!