When the gift recipients will be family or friends (rather than, say, professional colleagues) it truly is the thought that counts. Family and friends understand the financial situation of those who struggle with finances. (If you have professional colleagues to whom you plan to give gifts chances are you also have the money to buy an appropriate one.)

Bear in mind that these suggestions are for the truly financially challenged (such as students, low-income individuals, unemployed people, and the unemployed), and remember that the future gift recipients really do understand the situation and don't want someone who is struggling to try to buy "better" gifts.

1. Gifts that have been created by the giver are always very nice. If you're able to paint, something like simple watercolor artworks on mats make a really nice gift. If you're not an artist but are able to make anything with materials from a crafts store or discount store's crafts department that's nice too. WalMart has a crafts department and sells unpainted wood cut-outs out of which wall-hangings can be made. The small bottles of paint sell for under fifty cents each.

One or two stems of artificial flowers can be taken apart and arranged attractively on the painted wall-hanging. Ribbon for decorating and/or hanging or stick-on flowers and other stick-ons are also available. Hangers can be found either in the crafts, framing, stationery or curtain-rod departments. While a glue gun and glue stick are always best, extremely inexpensive glue can be found in the stationery department for under a dollar.

For the beading-inclined, crafts departments have all kinds of beads that can easily be strung to make gifts for girls (over six years old or so) and women.

2. Dollar Stores and Discount Stores (like WalMart) offer a variety of items that can be pretty, attractive or useful. Stores like these often offer a variety of basic glass vases, which, in themselves, are often handy to have. For the person who has a little skill with a paintbrush, painting these basic vases can turn something basic into something very special.

These stores usually offer inexpensive photo albums, things like desk accessories, or tools. While inexpensive tools aren't what a professional would want, the person who has no tools in his car's trunk may appreciate a few basic screwdrivers, wrenches and/or flashlights. Often found in stores like this are standard knit ski caps and basic little knit gloves in all colors. Things like umbrellas or scarves can also be extremely inexpensive. There are also "gift-y" items like scented candles and candle accessories. Picture frames (especially with your photo or painting in it) make nice gifts. These stores often have holiday or year-round mugs, which could be filled with candy or nuts and wrapped Easter-basket style with colored, see-through paper and a ribbon tie.
Discount stores often offer rather pretty costume jewelry, but even gift shops often offer nice looking costume jewelry for under fifteen dollars. With inexpensive costume jewelry simpler is usually better, and staying away from large, fake stones is always a good idea (unless, of course, you know that the recipient likes huge, fake, stones). Simple pieces without "gems" or with only tiny ones are usually the nicest. Also available in discount stores and gift shops are keychains, coaster sets, and other smaller gifts such as sports-team associated bottle openers, hats, keychains, Teddy Bears, or mugs.

Discount and dollar stores often sell calendars for very little. Placemats, potholders, and placemat/potholder sets make nice little gifts. So do table-runners and doilies. Stores like these offer two-dollar calculators (although you have to hunt out the ones that don't look like they cost that), dollar FM radios that fit in a pocket or purse, super-cheap headphones or earbuds (for the person who could use an extra pair and doesn't care whether they're top-of-the-line).
Sometimes a shopper can find super-cheap books or CD's at these stores. Small-sized scents, moisturizers, and other bath products from well known companies are often available, and sometimes unknown companies offer these products in pretty packages/bottles. (Many lesser known companies offer products that have a nice scent.)

For the gift recipient who also struggles, sometimes a pretty gift bag full of things the recipient really needs makes the perfect gift. Does s/he need office or school supplies? Kitchen items? Bathroom items? Personal products? Gadgets? Would a selection of teas, candy, cookies, coffees or cheeses be something the recipient would like? Keep in mind that discount department stores and drug stores also offer some fairly nice holiday gift packages priced at ten dollars and under. Hunting carefully can often help the shopper find that particularly nice gift package that's just a little more appealing than some of the not-so-great ones. At holiday time candy is often packaged in special tins. So is popcorn.

These stores often offer fairly nice looking (but cheap) glass plates, bowls, glasses, juice decanters, or even wine glasses. Not all gift recipients are looking for Lenox items. Holiday time often brings sales on things like coffee makers, toasters and irons. Other kitchen/food gadgets are also usually available for under fifteen dollars. For the shopper who knows someone who needs a cell phone or Ipod case, these stores often offer very inexpensive but reasonably nice looking cases.
Toys for babies under two are usually quite inexpensive. Bibs and cute little undershirts are also available for babies. So are Golden Books (often sold at places like supermarkets). Coloring books, paint-with-water books, activity books and crayons make nice little gifts for children. Generally, the toy department at a discount store offers toys, books, craft sets, and other items for children between five and twelve.

Regardless of the age of the recipient, small stuffed animals are usually available at discount department stores, discount drug stores, and dollar stores. At holiday time there are often pretty porcelain, collector-type, dolls in a variety of sizes.

Sometimes a shopper may find a pretty slip or camisole as a gift for women. There are also trinket boxes, make-up cases (or sets of cases), and tote bags. Some men may appreciate a good package of their favorite kind of socks, a shaving set, or some thermal gloves. There are manicure sets for both genders. Also, don't overlook pretty soap dishes or handcream dispensers, high-quality ice scrapers or snow shovels meant to be kept in cars, or inexpensive throws (blanket-type) to be kept on a sofa or bed or in a car for emergencies. Boxes of notecards also make a nice but inexpensive gift. Small plants in attractive pots make nice gifts for the right person as well. A bunch of fresh cut flowers from the supermarket (either wrapped by the florist department or placed in an inexpensive vase) is a small but nice gift under some circumstances.
Sometimes inexpensive, but particularly appropriate, Christmas ornaments can be found. There are often also knick-knack items that may be particularly right for certain people.

3. For those in the AT&T Wireless area AT&T's website often offers prepaid, refurbished (but with a limited warranty) cell phones for under twenty dollars. These prepaid phones come with ten dollars' time on them, so when AT&T is offering a refurbished phone for ten dollars the shopper gets the phone and the time for his ten dollars. The gift recipient must, of course, pay at least fifteen dollars a month to keep the service on (although s/he will have 60 days before the account is closed).

4. Don't forget edible gifts that you put together yourself. There are easy-to-make fudge recipes, as well as easy-to-make cookie, coffee cake, and banana-nut breads. If baking from scratch is not possible Pillsbury offers quickbread mixes (date, banana, carrot, pumpkin, lemon poppy, apple, and others) at less than two dollars a mix. These mixes require eggs, shortening, vegetable oil, any add-ins one prefers, loaf pans (disposable foil loaf pans in packages of three or individually are available) and a mixing bowl. Mixing up several different kinds of quickbreads and presenting them on a pretty (and inexpensive) holiday plate or in a holiday tin makes an inexpensive gift. When they're presented on a plate or in a tin they can be cut into small slices. These breads can also be presented unsliced and wrapped attractively.

Party stores, as well as discount and dollar stores, usually carry plastic, "cut-glass-looking" plates, trays, and other dishes for inexpensive but attractive presentation of foods. Inexpensive baskets can also often be found, especially at holiday time. Fruit baskets or fruit trays can easily be made by adding (of course) fruit and wrapping. Unsliced fruit will last longer, although slicing/cutting it works better on trays.

5. Gift cards and gift certificates are available from most retailers and start with denominations of ten dollars (although fast-food places may offer five-dollar books of gift certificates). Whether its a book store, WalMart, Dunkin Donuts, CVS or McDonalds, these cards can make useful gifts for some people. Students who use prepaid phone service may appreciate a few dollars on a phone card (that is, of course, from their service provider).

Many of the above gifts can be mixed and matched and included in a gift bag of assorted gifts. A gift bag with things like a small box of notecards, some scented candles, a pretty keychain, and a trial size package of some personal product the recipient is known to use makes a nice gift.
When the recipient understands the giver's financial situation giving a card with the gift is often not necessary. Gift tags with a few extra words on them will do the job. When a greeting card is important it isn't necessary to pay three dollars for one. Dollar stores, discount stores, and supermarkets often offer cards for less. Making a card is also nice. Its also not necessary to pay top dollar for wrapping paper, gift bags, tissue paper, tape or ribbons. These items, too, can be found at dollar stores for very little money.

Finally, regardless of one's religion (or lack of it), keep in mind the words from the Christmas song, "The Little Drummer Boy", in which the drummer boy says, "I have no gift to bring....that's fit to give a king....shall I play for Him on my drum?"