For example, you could pick up your knitting needles and knit a sweater for your child or significant other. If you need some inspiration the blog MomToMomTalk has some lovely Christmas sweater examples in their post Don’t knit these Christmas Sweaters. If needles aren't your forte, you could consider browsing the bargain book rack at your local book store where you might find a gem like this for only a dollar or so. With just a little thought there are all manner of affordable gifts you could buy or make.
Regardless of whatever
I suggest some amusing fake gift packaging from Prank Pack. Above is pictured their Bathe & Brew box. They have several other variations of fake product packaging available at their site. You place your crappy present inside of it and hope the recipient is so distracted by the silly product the package illustrates that they don't notice how cheap what you gave them really is.
Ho-ho-ho. Won't that add hours of laughter and joy to your Holidays!