I commented that I didn't see much utility in "educational toys" that merely spout out recorded numbers and mentioned that since she was using layaway it did sound like she was spending too much. Cue all these self righteous comments about how layaway is sound financial planning and so much better than credit cards. I almost puked myself and decided I'd better sign up for the Mustachian forum asap. So here I am!
For some people, a happy Christmas = insane amount of presents. It just does. I'm sure I felt like this at one point, and it's such a visceral instinct that it's not easily reasoned away by someone who just wants to cavort in a field of wrapping paper on Christmas morning.
Your response was right, of course. The other posters might have been receptive to the idea that the OP need not feel pressured to keep up with her sister's spending, because what her kid needs is her love and time, not stuff. People feel judged when you point out that they do their children no favors by blowing money the parents don't have on items with low utility (toys.)
Closer to December I think I'll start a Christmas support-group thread. Last year our household spent thousands (yes,
thousands) in total, on Christmas. For gifts and entertainment for about a dozen people. I'm expecting resistance to doing much to improve the figure this year, but am going to try.