Shop yard sales, thrift stores, or even trade with friends and family members for your very young children's holiday and birthday gifts.

This works especially well for "Santa" gifts that can be put out unwrapped and ready to go. Most baby and younger kids toys are in great shape and pretty much look brand new. If you shop year round, there is a good selection as well and chances are you will find exactly what you are looking for.

Also remember not to pass up an item with a minor flaw that can be a quick, inexpensive fix. I bought an expensive fridge and stove set at a yard sale that looked brand new except a knob on the fridge was missing. A trip to Home Depot and two new knobs later I had a great set for around $12!

We also picked up a carousel rocking horse that was missing a few nuts and bolts for $2 at a yard sale. Even after the $7 investment in the replacement parts, it was a steal at under $10 total.