Jen - How do you even go about setting aside an amount for Christmas? 

I have always just put a limit on how much I would spend per person and then blow it.  But now our extended family has just started having kids and I have NO IDEA how to figure out how to be a good Aunt while balancing frugality and great gifts!

Any ideas / budget /planning guidelines?

@Teresa - what we do is have the kids exchange names.  It helps on staying within our budget and the kids love the surprise of finding out who got their name.  Also, they get so much from everyone else already, they never miss not getting a present from every aunt/uncle.  :-)