This is something I've worked hard at for a number of years. A book that really helped me is "Unplug the Christmas Machine." The pithyest little bit out of that book is his list of the
Four Things Children Really Want for Christmas
1. Realistic expectations about gifts. To avoid the risk of your kids being "let down" by their Christmas gift haul, or, conversely, to avoid over-giving for fear that they might be disappointed (thereby upping the ante for next year, and the year after...) be upfront about what they should expect (eg. "One big gift from Santa, two fun but useful gifts from me and dad, and your stocking.")
2. Time with those they care about. Whole days with parents really focused on being with them. Time spent with extended family ... just being together.
3. Reliable traditions. Things that feel comfortable and familiar and come just as expected.
4. A reasonable pace to the holiday season. The biggest problem with the usual pace of the season is that it's all frantic build-up followed by an hour of gift-opening orgy and then a complete let-down.
In the past few years we've scaled our gift-giving back. The kids are happier than ever about Christmases now that they know what to expect. We've built lots of new traditions into our holiday season. Simple things -- the night we make hot apple cider, the night we go for a walk through the woods way after dark with flashlights, the day in mid-December when we make ice-lanterns, the day we're first "allowed" to play Christmas music on the stereo, the jigsaw puzzle we get out on Boxing Day, the egg-nog night we have when we invite Grandma over, the night we sing Christmas carols to the elves, a special video we watch every year, and so on. These traditions don't take a lot of time or money, but they are very much cherished, and they do spread the joy of the season around, so that it's a holiday season for us now, rather than a one-day boom & bust. There are still special things to look forward to after Christmas Day, and the simple but special traditions start long before Christmas.
We have had serious discussions with extended family and friends about the nature of our end of gift exchanges. We've told them that when the children (and their parents!) are overwhelmed with gifts the individual gifts lose meaning for them. We want the kids to grow up aware of the meaning that those gifts convey, and focused on the joy of giving as much as receiving. So we will be giving one gift to each household outside our immediate family, no individual gifts, and we will be trying to involve the kids in choosing and or creating those gifts. We're also going to try to choose gifts that help bring those households/families together in some way. And we would welcome them to follow suit. We work on gifts throughout the fall. They're simple; they're mostly hand-made, and we're usually finished by early December.
For Christmas dinner, I put almost everything in the fridge or freezer, ready to re-heat, over the few days before. Except the turkey, of course. Christmas Day is usually calm and nice. We have time to get outside together and play in the snow, even the grownups, building an igloo if snow conditions are ripe, while the turkey roasts.
Nevertheless I find I am always fighting back a wave of "gotta do more" anxiety, inherited from my childhood, when everything was focused on "The Big Day" and it had to be The Best Ever. So although I've made a lot of progress towrads holiday season simplicity, holding onto that progress, let alone building on it, is always a challenge.
Miranda