Any ideas for Christmas gifts to make for my grade 1 & 2 students?

You could paint mini portraits of each of them, paint a greeting card with encouraging words, make book marks out of cardboard or poster board with their name on them and a little yarn sash.

I love kiddos. You could also do painted pet rocks.

My son made me a gift in 1st grade (he is now 24 yrs) and I still display it every year. It was a very small clay pot (approx. 2"??) painted by him (imperfections made me love it more) dirt added and the teacher took a garland and cut off each individual branch (hundred + trees from 1 garland). Instant miniature tree! Tied a bow just under the rim of the pot...beautiful! (especially to a mom!)

We still have the tube sock snowmen our children made, pretty easy and inexpensive. Or the macaroni wreath with picture still around along with wreath made from cut out hands.

i love Pinterest and they have lots of crafts for kids. Really cute reindeer made from wine corks and I believe you can buy them by the bag (wine corks) at a craft store. Check out Pinterest tho because they lots of other inexpensive crafts. Some using pine cones which are free if u have pine trees around.

My teacher friend is having her students paint little inexpensive pots and planting baby spider off shoots that she had rooted for the children from her mother plant.

When I taught the little ones, I would buy apple ornaments (from Michael's or Target) and write the students names and dates on them with acrylic paint pens.

This is one of my favorites...buy some puzzles with slightly large puzzle pieces. Paint each piece how you like. Put two holes in each and run a piece of string, plastic, etc. through each so they lay flat When hanging around their neck. Add a personal note for each with a paint marker in Gold or silver.

This should get you started with ideas for kids....