1 - Have I been the one to change traditions? Yep. First of my generation with kids. That'll do it! :) :) :)
2 - Personally, I hate your idea... and would never agree to it.
a) The reason WHY most young adults don't buy other young adults gifts is that they're almost all BROKE. They're just starting out. They have to buy for immediate family, friends, etc. (often a huge strain)... AND be paying college tuition or student loans, living in crappy apartments, occasionally borrowing a fiver (or couple hundred) from mum and dad. Some are starting families of their own (even broker). Some are doing fairly well, but are saving up for that master's program, or a downpayment on a house, condo, or car.
"Forcing" the cousins to spend money they probably don't have is just cruel. The exact opposite of the holiday spirit.
b) I'm already sacrificing to get gifts for loved ones. While it's nice, and all, to think of giving money to those who "really" need it... quite frankly, I'd like to pay my electrical bill. If I'm not buying a gift for my sister, that's EXACTLY where that money is going. To my electrical bill.
A thing to keep in mind:
c) Charity begins at home:
It's unlikely you know the intimate details of your siblings finances, although you probably know the generalities. My auntie at one point proposed something to my mum... not knowing that while my mum "made" $10,000 per month, $9,000 per month was going to pay for alzeheimers nursing home care for my grandmother. Why didn't she know? Because my grandmother wasn't her mum (MIL)... and my mum didn't broadcast that she was paying for my grandmother's care (no one else could afford to at that point, all were having problems making ends meet). Nor that I'd been stupid and not had renters insurance, so that when the hurricane hit, I lost everything... and my parents were helping me out (thankyou mum for not broadcasting that brilliant bit of planning on my part). To my aunt's mind... my mum made double what SHE did, so there should be no problem, right? Wrong. Because of things my mum was keeping private.
d) If no one in your family has ANYONE who is struggling, or just starting out / everyone is provided for: "picking" a charity is often difficult when there's a group of people involved. Why? Research & Priorities & Record Keeping (for tax purposes, or other). Not impossible! Just often difficult.
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Your siblings may all LOVE the idea. I'm not saying its a bad one (WELL, except for guilt tripping the cousins over the holidays), just one that due to my own circumstances... I could never agree to. If everyone ELSE agreed? I'd put the money towards my electric bill. My mum? She'd put the money away for my sister saving for grad school, or my son's medical bills, or for a special lunch to treat a friend.
3 - LOL. Isn't HILARIOUS (seriously) how so many people think distance isn't equal??? It's JUST as far from my house to yours, as it is from your house to mine! Cracks me up.