When my friends' kids were that young, they told me that quantity meant more than quality at that age, so a grab bag of stuff from the dollar store was ideal. As they got older, I gave them subscriptions to ranger rick, my big backyard, or wild baby animals depending on their ages.

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How about fishing supplies? If the kids like to fish, they are pretty cheap.

If they have bicycles or tricycles they might like a bicycle bell like this. This one is from Amazon, but I saw one like it at Walmart last week for $3.99. I gave one to a neighbor boy for his 4th or 3rd birthday a few years ago. His mom said that after the party, took the bell and had to have his dad put it on his trike right away. She was impressed at how much he liked it.

Amazon.com: Schwinn OPP Bell (Colors May Vary, Black or Chrome): Sports & Outdoors

I like to give books and games instead of toys. Target has alot of games for younger ones on sale right now for $4, for example The Fishing Game, Memory, CandyLand, etc.

I always browse the bargain books at Borders and Barnes and Noble and keep those in my gift closet. Borders especially tends to have alot of book kits where they include art supplies etc. Puzzles are also fun and inexpensive.

I also like to stock up on art supplies when the back to school stuff goes on clearance and make art baskets. I fill them with crayons, markers, watercolors, chalk, an art pad, glue sticks etc. Michaels crafts always discounts little kids art kits too. I've gotten them as cheap as a quarter and I'll throw those in as extras.

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~AMY~

Check out JoAnn's or even Target's craft section for the kid's craft kits. Sometimes you can get them super cheap. I stocked up on several different craft kits for about $4 a peice and they are normally $10-12. Something the child and parent could do together.

How about an umbrella with a favorite character or sunglasses? I know my kids would really like either one and they are not too expensive.

I try hitting clearances or garage/ church sales. Last year I got about 20 new hotwheels cars for 25 cents each at a church sale for my nephew. I gave him 4 for his birthday and 4 others for Christmas and he was delighted!

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http://www.authspot.com/Short-Storie...test-Sin.38266

I usually go to the Dollar Tree or Michael's has good coupons. And I love the magazine subscription idea!

I agree with the craft/art kit idea. Around here, Joanne's and Michael's and AC Moore will all take each other's coupons so I stock my gift closet with a bunch of them at 40-50% off depending on what coupons are out at the time.

Things we have done:

1. Disposable camera and small photo album or picture frame

2. new crayons and markers (bought at back to school time) with jumbo coloring books and drawing/construction paper

3. Bubble bath and bath toys

4. make a present - my daughter is currently making duct tape wallets for her friends. She personalizes them with stickers, puts a note in it and adds a $2 bill.