MIL somehow found out the status of our finances and now thinks we're an ATM machine

This is exactly how my MIL is. Spends like crazy and always asks to borrow money (which is never repaid) or for lavish gifts. Told my DH multiple times that he owes her because she had to carry him for 9 months etc.

We saved up to pay for our wedding ourselves with no help, which left us with little money before the big day. Her birthday was a week before and she wrote on my DH FB that "It's my bday next week you better open your wallets cuz mama needs a laptop" and tagged a MacBook pro link ($1200 bucks!!!!). DH replied that we were low on cash, and that we would happily take her to dinner. (Who even can afford to buy their mom a laptop for bday anyway?) She threw a shit fit.

Cut to this xmas: we just bought a house in November, which cut into our savings with down payment and furniture purchases. We asked our family to keep things very modest with presents because of this and we would host dinner and spend time together for the holiday. Of course MIL says she NEEDS a new phone because she dropped her and that DH can get her one for xmas cuz she can't be without a cellphone. (FYI DH and I already pay her cellphone bill because she is on our family plan and its really good deal for the 3 of us.) DH said we can't afford it but offers his old phone so she will have one, but she NEEDS the newest iphone. Of course he stood his ground, but she pouted for a week, then went behind his back and got a new phone on our contract, which we didnt find out till we recieved the wireless bill. When he confronts her about it, she says he told her she could buy it and it's the least he could do and that she can't handle all the stress and it might bring back her cancer. Ughhhhhhhh

/r/JUSTNOMIL Thread