Well, the Xmas spirit isn't really there is it, but it can be a dear do and if half of the people don't turn up it seems a lot of wasted money. I can see her point, but would never do it myself.

If you can't afford to do a meal for everyone, then you shouldn't invite them in the first place in my opinion.

I cancelled Xmas dinner and presents last year because I had used the money for my garden instead and I told everyone so they didn't expect anything. My kids had no problem with that. (my kids are adults by the way).

You can't always do it all. Sometimes you have to prioritise.