Here are some ideas for gifts which would cost $10 or less to either purchase or create.
Homemade Gifts/Give Your Time: Homemade gifts and cards are inexpensive and most of the time more meaningful than store bought gifts or cards. You can easily create gifts even if you don’t have any “crafting abilities”. Here are two easy ideas which anyone can do for little money. If you have younger children, place their handprints on a piece of paper, add a picture along with the date and frame it. You could also bake cookies, brownies, bread, or a cake. You can give your time by offering to babysit, clean the person’s car or house or cook the person a meal.
Check Store Website: Even if you plan purchase in-store, check the on-line website before you shop. Most stores have a section titled, “Gifts for Under $10 or $5" which will help you figure out what to purchase before you go to the store. Also sometimes the on-line price is less expensive then the in-store price and most stores will price match and you will save on shipping costs.
Magazines: You can find 1 year magazine subscriptions for as little as $5 or even for free. If the person you plan to give the gift to already as the subscription, when you purchase it the subscription should renew. You can check Swap Savers list of free magazines which do not require you to cancel
Free Magazines or Amazon has many magazine for $10 or less here
Amazon $10 or less Magazines
Books: If you are purchasing a gift for a fellow frugal friend or family member, a good option is a do-it-yourself book, money saving book or cook book since these will save you money. Here are some websites which offer discounted books with free shipping on select items or purchases
Books at Amazon
,
Barnes & Noble Save 15% off one eligible item with coupon code: B3U9U7U, and
Borders.com get 30% off 1 item exp 12/17/09
and free shipping for orders over $25.
Free $10 Restaurant.com Gift Certificates: Right now you can give a $10 Restaurant.com gift certificate for free to 30 people every day until Christmas.
Free $10 Restaurant.com Gift Certificate.
If you prefer to give a higher amount gift cards you can at
Restaurant.com 
Gifts Cards starting at $4.50 for $25 cards. Use current promo code SNOW to save an additional 70% off thru 12/17/09.
Photo Canvas or Photos: A framed photo makes a great gift and can cost under $10. Another option is to turn one of your photos into a canvas similar to art work. You could even alter the colors in the picture to give the picture an art look. At Canvas People you will receive a free 8x10 Canvas Photo Print (worth $55) or $55 off any size.
Free 8x10 Canvas Print.
The shipping costs $14.95. If you shop through Cashbaq you will receive $6 rebate so the total price would be $8.95. If you are new to Cashbaq you would earn $5 for singing up so the canvas photo print would only be $3.95.
Cashbaq Canvas People
Or Shop at Home is offering a $7 cash back rebate
Shop at Home $5 sign up bonus so the price would be $7.95 or $2.95 if you are new to Shop at Home.
Other options for printing photos
Shop Walgreens Photo for 10-cent prints. Valid 11/29-12/5.
pick up in-store to avoid shipping fees;
SeeHere.com
100 Free* 4x6 Prints with promo code: prints - *Shipping Not Included;
KODAK Gallery 
New Members get 50 FREE prints;
Snapfish by HP
50 Free prints for new members
Create a Music CD: Many websites offer free music downloads. Even if you purchase a song, most websites charge $0.99 per song (Wal-Mart charges $0.88). You could create a holiday CD or a workout CD or songs the person likes for under $10 by using free music downloads and/or purchasing songs.
Free Music Downloads Websites (you can purchase songs at all of these sites too). Right now Amazon is offering 25 days of free holiday music (a new song each day).
Free Holiday Music from Amazon
To read more about how to save during the holidays:
How to Save Money During the Holidays
What ideas do you have to inexpensive gifts?
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