I dont really know how much we spend on our daughter. I do try to fill her stocking with knick-knacks, and also have few presents under the tree. I would say that last year we stayed between $100-$150 for her. She gets A LOT of stuff from family.
We always do a family Christmas trip to Gatlinburg, TN, so that is a present to all 3 of us-spending time together, Christmas lights, and Christmas Parade.
My husband and I are on a strict budget by the end of the year so we make a certain budget (ex. $40) and then make a list of 5-8 things to choose from that we would like to have that way we can still open a (surprise) presents from each other because, lets face it, even adults enjoy presents.
Last year we gave out handmade fridge pic frames with our daughter's pic in them along with a decorative baggy of my homemade choco dipped pretzel sticks-these went to each family. Then we mostly bought tiny cheap gifts for the very few "kids" in our family. This year we are giving a choice of a chocolatey handmade treat(havent figured out yet) or a homemade seasoning(made from vegs in our garden), and a pic of our daughter to distant families. Last but not least, my cheesy but thrifty idea-we have a FSA (flex spending account) and as you may know, if you dont use your money by the end of the year you lose it so...we are putting together some "Over the Counter Gift Baskets" for close family households. : p These things can be expensive and are always needed.
Over all, the economy is rough right now so I dont think people expect too much. Have fun with it and help people remember what Christmas is REALLY about!