Cheap Christmas gift ideas are often homemade Christmas gift ideas.
Inexpensive homemade Christmas gifts show just as much love, if not more, for the personalisation and effort involved.
Food - bake it OR buy it
If you choose to bake don't worry if you're not any good at it. Your friends will find it endearing.
Write a poem - If you can't write a poem yourself find a poem you like and write it on nice paper, decorate it however you like and put it into an inexpensive photo frame.
Homemade Christmas card - sweet idea especially from a younger member of the family
Homemade CD compilation - Make a compilation of great Christmas-themed songs or just their favourite songs from that year. Personalise with a handmade CD cover and track-listing
Or...buy something cheap and package it beautifully
Then...get going with some creative packaging ideas.