It's the thought that counts right? Gift tags are inexpensive as it is, so trying to make them more economical is almost lost here. Giving the tags a personal touch is more what this is about.
Look for old photos, perhaps from Christmases past, and print them on textured card stock. For this card I used the sepia feature on Picasa. Love Picasa.
Simply punch a hole and add a pretty ribbon. A nice message can be written on the back. Easy.