I like the idea of personalized stationery, but I don't know many people these days that actually send letters. Mailing labels or address stampers might be put to better use.
Some gift ideas I've used that were pretty inexpensive:
Decoupaged photo frames personalized to each individual
Photo calendars through Walmart
Disks filled with photos I have taken throughout the year
Food gifts (shop grocery sales)
- cookie mix, new spatuala and baking sheet
- jars of mixes - soups, stuffings, cookies
- trays of baked goods
One year I went to Michael's craft store every week starting in early November with the coupon from their weekly circular (usually 40% off) to buy art sets, craft kits, home decor items, candles, photo frames, or art supplies to make a basket of items. You could buy craft kits for the kids to make/personalize - stepping stones, mugs, tote bags, trinket boxes, holiday decorations, calendars, bird houses, "catch alls", etc.