I don't know your situation, but I know mine. The guy came to give an estimate for cutting down some diseased very tall pines around our house (one which would eventually fall on the house!) a few days ago--$2500. My husband, who gets tighter with money every year (now in his 70's), announced afterward we couldn't afford gifts this year for each other and not much for kids and grandkids. I'm the one who keeps up with the money--pays bills, balances accounts, keeps up with investiments. I cut him short on that deal and said we'd do the same for Christmas as we've always done. He hasn't mentioned it since.
However, I know in today's economy many are having to cut corners. I like the suggestion others have made that you give gifts that don't cost money, just time and effort. A gift doesn't have to be something purchased from a store.