I wrap my gifts in fabric that I reuse every year. One year I just decided to stop using paper and went out and bought about nine yards of inexpensive ($1/yard) festive-looking fabric. I bought a bunch of ribbon, too, because I don't adhere the fabric to close it; I depend on the ribbon to hold it closed. There's a lovely green and gold diamond pattern, blue with white snowmen, purplish/reddish with snowflakes... After the season I went and bought some more. I cut it into two or three basic sizes. For large items I use (and reuse) those big cloth bags from Amazon that they sell at the Job Lot. And I reuse every single gift bag I get.
Fabric-wrapped gifts are sometimes easier, unfortunately, for little eyes to peek into, being more loosely wrapped, but that's a sacrifice I'm willing to take to be green.
I use inexpensive tissue paper for the Santa gifts, and I don't use the fabric for any gifts I give to people outside of my home, but still, a roll of paper lasts me two or three years.
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