I personally love the ornaments made from small puzzle pieces, with a picture of the child in the middle. I still have my own child's from several years ago. They always come out cute, and the parents love them! If you need directions let me know - it's basically glueing the puzzle pieces onto tag board, spray painting, dotting on red paint (for berries), taping a picture to the back, then adding another piece of tag board. Easy!
Last year I purchased plain glass dinner plates for $.50 each. I asked the students to bring in Christmas fabric that could be easily cut into squares or rectangles. We turned the plated over and glued the fabric to the back overlapping. Be sure to spray with a sealer when dry. When turned over you see the fabric and it can be used as a cookie plate.
I just saw one that was to make a litter bag for parent's cars. Take a small brown paper bag, punch holes in one side and tie with handle with jute. Kids can decorate them appropriately for either parent or both and have a useful gift that they see daily in the car. Cute!