kripkrip420 has a good answer in showing someone you care, thinking about the recipient to find or make a suitable gift.
In my family, we have done homemade gifts for years. I have been known to start working on my gift projects as early as April to have everything ready by Christmas. We try not to make our focus money or material things as we celebrate Christmas.
We shop yard sales and thrift shops throughout the year. You can find some nice things, sometimes new, this way. We also watch sale papers throughout the year for good deals on something we know will be enjoyed by another family member. We also take advantage of clearance sales for Christmas gifts. After Christmas clearance is great for the following Christmas or even when the seasons change.