I found these cute ideas from marthastewart.com. I love to wrap presents almost as much as I love to open them. Nothing says Christmas to me like matching presents under the tree.
This button-stamped gift wrap is fun to make. Affix button to a cork with double-sided tape. Place plain paper on a piece of felt or a folded piece of fabric (this cushions the paper so the mark will be even). Top with a pretty button tied on with baker's twine.
Recycle holiday cards as labels for presents. With a pencil, kids can draw (or stencil) the recipient's initial onto a card, and cut it out. Punch a hole in the letter, and tie to gift with yarn or ribbon.