I am also trying desperately to save money this year.
We are buying 75% of our presents from the car boot or charity shops (car boot is cheaper). We've got LOADS of games and puzzles with the celophane still on them for next to nothing, literally pennies. I've bought really good nic books for pennies for little children and a pair of gloves for about 50p. How much do you want to spend per child?
I made chutney last year which hardly cost anything and used old jam jars. Easiest thing in the world to do, sling all chopped ingredients into a pan, turn on heat, return to settee for about an hour, pour into jars. Google some recipes. Also, make shortbread which is seriously cheap. Put the children's or recipient's initials on or something? We did painted flower pots with sweets in and celophane and ribbons. They cost next to nothing too.
For friends I'm doing a cinema at home, cheap old fave dvd (bootsale £1), packet of popcorn and a special offer bottle of vino, all in a box with shredded paper around it. Good enough per couple and a bit of fun.
We've made bracelets for teachers out of pipe cleaners and glitter. It is deffo the sentiment they like the most.
We also did paper plate calendars. The children painted the paper plates and I printed a photo of them and stuck it to the finished artwork. The little calendars were 10p each. Who doesn't love them?!
Good luck and will look forward to all other ideas!