What children actually remember, and why it is almost never the expensive part.

Eureka! Well, not eureka exactly. More a thing I have noticed over a great many years of designing toys, which is this: the toys are not the part they remember.
I say that as the elf whose entire job is making the toys. It is still true.
Ask an adult about Christmas as a child and you will almost never get a list of presents. You will get a smell, a room, a person, a song, a specific moment.
By my calculations, the memorable parts of Christmas are overwhelmingly the free ones. This is genuinely good news if money is tight this year.
If you have a small amount to spend, put it where the memory forms rather than where the value is.
A child opening one thing they desperately wanted, slowly, with everyone watching, has a better morning than a child opening eight things quickly. The second costs several times more and produces less.
Fewer, slower, and one clear highlight beats volume every time.
Every one of these is remembered more reliably than a mid-priced toy.
Filler presents. The small things bought to make the pile look bigger are the ones nobody remembers by February, and they are frequently a third of the total spend.
Cut the filler entirely and put half of it into the main gift. The morning will feel bigger, not smaller.
Children compare, and it is worth getting ahead of it.
Establish early that Santa works with each family on what suits their home. It is true, it is fair, and it does not imply anything about who deserved more. Say it in November and it will be already-known information in January.
Young children do not distinguish between new and nearly-new, and the money saved is substantial. Wooden toys, books and building sets in particular are usually indistinguishable once wrapped.
I have taken apart a great many toys in my workshop. The ones that last were rarely the expensive ones.
What I have noticed, watching families for a long time, is that the moments children retell are the ones where something impossible happened. Santa knowing their name. Santa mentioning the thing that happened at school.
That kind of moment costs a fraction of a mid-range toy and gets remembered for a decade, which by my calculations is an extremely good return.
See what a message from Santa costs compared with what it is worth.
Cut the filler. Spend on one thing. Slow the morning down. Add three free traditions and repeat them every year.
Your children are not keeping score of what anything cost. They are keeping a handful of moments, and you get to choose what those are.