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No one seems to use handkerchiefs anymore so they're easy to find at vintage sales and can be picked up for $1 or less each.
Why not use them to wrap a small gift by gathering one around a gift box and tying it off with ribbon.
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They can be used inside to cushion a delicate gift instead of tissue paper.
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For larger gifts, use a silk scarf. Just tie opposite corners to create a big soft bow, tucking the pointy ends into the knot. Once unwrapped, the wrap becomes a gift in itself.
Or, as in the gift below, simply tie the ends and let them dangle.
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A thrift shop scarf is less expensive than a sheet of wrapping paper and best of all doesn't get used only once before it is thrown out.
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