RM turned 8 recently so I used the Mars free chocolate coupons in conjunction with a Rite Aid BOGO sale and bought him 8 candy bars. That was a couple weeks ago and he's already eaten them all :p I've also seen people use this idea for cards (1 starburst, 2 M&Ms, etc.)
LA turned 6 in July & I got him a giant frisbee from Oriental Trading Co. for $5. Then I got a sharpie and wrote messages all over it. You could also use this idea for homemade kites - the idea is to cover the item in birthday wishes and fun phrases.
For my son's first birthday in a couple weeks, I am making banana shaped bean bags and my husband is going to make a bean bag toss out of a sheet of plywood and then I/my sister will paint it to look something like this:
Those are the most recent gifts I've done. I'm sure I could think of more, but my baby just woke up from his nap....