Inexpensive projects to do with kids can also make great gifts! Here are some ideas:

An unfinished wood item (initial, birdhouse, stepstool, etc.) with set of acrylic paints and brushes
Knitting needles or crochet hook with yarn and a free scarf pattern or knitting instructions
Bracelet Beading supplies
Stamping set
Scrapbooking materials or creativity book
Crafting kits of all kinds from [...]