Yesterday I bought some flannel and felt for $1 a yard (bolt ends). I made up about 8 bags of various sizes and colors for $8, and used some yardage I had on hand (I first braided it) for the cording.
These can be used year after year, and saves the expense of wrapping paper.
We also use the funny papers for wrapping paper as well.
The kids like to take a brown paper grocery bag, cut it, turn it inside out and potato or rubber stamp holiday designs on the solid side, to make their own wrapping paper.
By April from Plattsburg, MO

By Tedebear from San Jose CA
By Bryguyf69 from NYC, NY

Handprint Gift Wrap
Roll out a large section from a long roll of paper or lay out a large sheet of paper. I like to use the rolls from the ends of the newspaper that our local newspaper sells cheap.
Use different trays to set out different colored paints. I save the foam trays that come under groceries and use them for this, or you could use paper plates.
Either let the child dip their hand in the paint, or paint it on their hands using a paint brush. If using a brush, the foam kind works really well.
Randomly stamp handprints all over the paper. You may want to allow some time to dry between colors if you don't want them to mix too much.
When completely dry, roll it up and save for the perfect gift wrap to accompany any special gift! I save the rolls to purchased gift wrap which comes in handy to store the homemade gift wrap.
Variation: Try this with feet too!
By Jayme from Harrisonburg, VA
Christmas is traditionally family time, and here is a project that you and your child can do together. Using cookie cutters with Christmas shapes as your inspiration, make your own stencils from an old sheet of X-ray film, and then do printing with these stencils on inexpensive brown paper. A fun way to add a personal touch to gift wrapping!
Approximate Time: 20 minutes
By BessieBessie from Pretoria, Gauteng