I think wrapping paper is a rip off, no pun intended. I prefer to get a little creative with my wrapping. For example, I'm a big fan of using recieving blankets for wrapping paper on baby gifts. The holidays don't always lend themselves to this kind of creative wrapping so in many cases I just go with the minimum. Yesterday, however, I came up with a frugal, waste free way to adorn my gift packages.
I have quite a bit of scrap fleece from my curtain lining project last year. Since the gift in question was for my 2 yr old niece, I used my youngest son as a model. I cut the appropriate width and length of fleece for a scarf and cut a small fringe into either end. I then used the scarf to create a chunky, toddler sized bow on her birthday package. It looked pretty neat.
Since I used fleece, making a scarf is a no-sew project. That makes it great for doing with the kids. A few years back we did it with our girl scout troop with good results as well. In the past, I've seen a pattern for a fleece hat that I may give a try. It only involves making one seam up the side. I'll post it tomorrow. Hats, gloves and scarves may be the perfect gifts to make for the child in your life who leaves more at the school lost and found than at home in his/her closet.