I am having good luck with paper towels. During the day I just keep adding a layer. Once a day I change the whole thing. They are 4 days old. Soon I will switch to pine shavings though. Also I got a really good deal on a BIG package of paper towels!
Shredded paper is usually not a good animal bedding unless you have something like gerbils who are desert animals, drink very little, pee very little, shred their own bedding, and keep their own cage clean. It tends to not give a very good footing, compacts down into a gooey mess when wet, requires constant cleaning out....
I used paper towels for the first 4 days but it's not really cheaper than shavings unless you don't clean the pen. If you don't clean it you'll end up with sick chicks. Bedding is about the cheapest part of taking care of them though. Really is $5 for a bag of pine shavings that bad? Here $5 will get me a giant bag that fills my 3x6' guinea pig pen and the brooder 3 or 4 times. Even from walmart a $5 bag will fill my brooder at least twice. The few bucks I spent on bedding for the chicks is not even worth mentioning.
I tried some shredded paper once -it was awful.I am using some chopped hay and shavings now for "indoor" babies- trying to get sand for the outdoor buildings-Aspen while$$$ is less dusty than pine
I tried shredded paper with 3 week old NN's. What a mess. Went to pine shavings and enjoyed wathing them trying to dust themselves in it. Pine shavings for me from now on!