I like to let the kids do it. I think it makes it personal.

We reuse gift bags and wrapping paper - we save it from packages and fold it up to use on smaller boxes the next year.  We have used foil - crinkles up and tied with a bright ribbon is very festive.  Really though, it is not very expensive and you don't buy it too often.

My mother usually waits till after the holiday and buys a ton of wrapping paper.  She specifically gets papers that could work well for almost any holiday, like non-descript papers around Christma time.

I guess mine isn't butcher paper.  I don't know who's it is, but it's almost cloth like.  I use it alot to cover our folding tables when we have big gatherings (It's a HUGE roll and I got it for a few bucks at a paper store at the end of the year clearance - I love clearance).  If you watch places like CVS pharmacy and stores like that AND you catch them right on time, you can get rolls for .25s.  I buy the small (tiny) ornaments at the end of the year and use them to make jewelry the next year for teacher gifts.