We only have one child and he's almost 4. His birthday is just a month after xmas. I do buy him items during the year, I just see something that I think he likes and get it. However, its not all the time and its not much. I think going 11 months without anything is hard for *me* to do right now. Markers, crayons, coloring books, a ball or a DVD. Nothing huge.
We don't have a budget per say. His first xmas, we got him a ride on toy that was about $35 -- however, we did fly back home for christmas which was pretty expensive. The second year, I got him a bit more, and we stayed home. Last year, I went overboard as I started buying pretty early and stashed his stuff. Then I couldn't remember how much I really spent. Even when I split it out over his birthday, it was probably $300-400 between both.
This year, I have spent $25 so far and I still don't know what I'm going to get him for his "santa" gift. I'm thinking tools/workbench or a construction type vehicle. Probably should have parted with some of his toys by now, but its hard to decide what he will or will not play with anymore. We live in an apartment and its already over-run with a train table, easel, mini trampoline amongst all his other toys.
So, I guess a clearer answer to your question, is that I don't have a firm budget and our spending has varied.
I asked him what he wanted for christmas and he said a christmas tree. It was just so cute and a great reminder that its not about the toys, its the little things. Be still my beating heart