We buy for our son, nieces (we don’t have any nephews yet) and our cousins that are children. Then we draw names with the adults in my immediate family and buy only for the person whose name we drew. We use to draw names with the adults in my husband’s immediate family as well, but we stopped doing that last year, and instead we (me, my husband, and his siblings) buy a joint gift for their parents.
I buy a small gift for my friend’s children and then bake goodies (cookies, brownies, fudge, etc) and put them in nice containers for all of my close friends.
How much we spend varies a bit, but we try to keep to a budget. Obviously our son gets the most.
As far as buying for each other, so far we’ve always done joint Christmas shopping for each other were we pretty much just go shopping together and pick things out we both like/want. Our focus is pretty much on everyone else for Christmas.