Holiday Gift Exchange!!!!

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Ok we have all been there the holiday gift exchange with friends.. Well it seems that we have been doing this on and off with friends some yrs yes some no. Now this year it hasn't been discussed but my friend has decided to get me something god only knows what, but now I feel obligated to return the favor. Thing is money is tight since I haven't worked since late october after being laid off and the unemployment I'm getting ain't cutting it, I also have 5 kids that i have to get for so at what limit do i put the gift that I know that I'm going to get my friend?