Keep the kids busy and have great, cheap gift bags. Get a pack of brown lunch bags at the dollar store and let the kids decorate them with markers, stencils, glitter-glue, whatever is on hand. Punch 2 holes in the top and thread a ribbon, yarn, or raffia thru and tie a bow. Custom gift wrap! As elaborate or simple as you like AND it keeps the kids very busy having fun!
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We did this last year and they actually turned out very nice. We bought a package of white lunch sacks and used stamps and blue ink stamp pads. We used a single impression of larger stamps -- about 3 - 4 inches across -- but I can imagine a series of smaller ones would be pretty also.
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