We try to keep it simple. Remind the kids of the true meaning of Christmas and that to give (not just in a monetary sense) is what it is all about.
One thing we do every Christmas in the way of gifts for the kids is get them something active. A bike, Rollerblades, etc. Living in a city, with quarters as close as Phoenix, doesn't offer many places to explore safely, so we try not to get them gifts that will let them plant themselves infront of the TV/ computer for hours on end.
This year as a family we are getting a Vizsla...