My sister and I decided to make gifts for each other (and our girls). I'm crocheting like a mad woman!
For my little girl I'm relying on Craigslist and thrift stores for her presents. I've spend less then $70 and I've gotten her a handmade wooden doll house, with furniture, a bike, a HUGE box full of Barbies (with clothes), and a tether ball set. At 5, she won't care that nothing is new, it will be fun to play with all the same!