Should I give out my photography for free?

I am a trained photographer who's just starting to "get out" into the "real world." I took some pictures for my family and spent a lot of time on making them nice. I don't mind doing work for them "pro bono" (it's my family after all) but afterwards found out that they expected me to give out the work (for free and sans copyright mark so they could make multiple prints) to several family friends and already promised them free copies of my work without my knowledge. I said I would give them one disk, with my watermark on all the pictures which gives them the files but technically prevents them from being printed. They're upset at this and I'm upset...mainly because I don't even hand out freebies to personal friends. People don't realize how much time goes into making quality pictures. Then again, am I being "scrooge?"