I use plain white tissue paper and food coloring. Fold the tissue in half width wise. Then fold it in half again. Do this until it is about five inches wide and still the original length.
Then, take the bottom corner and fold it to the top making the end angled. Then take the point of the angle and fold it over so that the outer edge is straight again. Then fold the top corner down and then the point over. Start over at the bottom and repeat until you reach the end of the paper. Make sure it is flattened and pretty even. Clothespin it together at the top.
Take food coloring and dilute it slightly with water. put the tip of the paper in it and let it soak some up. Dont do this long for the paper will act like a wick. When it has stopped rising, dip the end in undiluted coloring of the same shade. Dont let it rise up as much as the other. Hang to dry. When it's dry, unfold and you will have tiedyed paper. It's cheap and looks cool.

If you know how to fold it (too complicated to explain) ,you can use the white tissue as a filler like they do at the stores.
Buy plain brown craft paper and let the kids draw decorations on it. Young kids will enjoy seeing their paper under the tree. Use the paper plain and let them make fans,snow flakes and others out of white or colored paper to put on the present.
Use plain paper and make a collage on it. I once ate a lot of colored foil covered hershey's at Easter and Christmas(say that three times really fast). I saved the foils, peeled them off of the paper, and made a multicolored wrapping paper. I had way too much time and not much money that year. lol I had lots of cheap ribbon and no paper one year. I took craft paper and wove a basket weave of ribbon around the paper. My mom loved it and my sis was jealous. I have done all but the crayon colored paper. All were received with great success. I have even made my own simple bows. I make do with what I have. I dont worry as much about my lack of funds since I have had success with this.