I started with the $1 books on Scholastic and used points to order them with my last book order. When I moved rooms this past summer I came across some glow bracelets that our Sheriff's Department brought in, and I had stored away, so they will each get one this year. I then sharpened a pencil (my kids LOVE freshlysharpened pencils this year) and threw that in. I created a Free Homework Pass to use for any subject, after getting permission from the other teachers who have my kids for math! This is sure to be a hit with all of them!
To put it all together, I grabbed brown lunch bags which I already had, punched holes in the top and wrapped a ribbon with an ornament to hang from the outside for some added decor when they walk in in the morning. The ornaments were purchased last year after Christmas and were 25 cents for 6 ornaments!
They aren't fancy, but I think the kids will be really excited to get a lot of different items, and it was really cheap to create!! Both goals accomplished.