If I absolutley had no money to spend, I'd do the following:
Repurpose some old flannel sheets into personalized bed pillow cases. Embroider the initials/name on the end
Make flannel sleep pants out of repurposed flannel sheets
Bake a favorite type of cookie for each and present them in a tin
Fill a holiday themed gift bag (I reuse these year after year) with personal care items such as tooth brush, shower gel, shave cream, razors, soap, shampoo, deodorant, lotion, lip balm
Depending upon how young the little ones are, I'd contact my church/social service agency to see if a gift couldn't be donated somehowche
I'd post and check what's available thru Freecycle. I've given away tons, but also received some wanted items.