I worked in a daycare for many years. I can tell you a few things not to give. I was always appreciative of every present, but after receiving my 100th coffee mug with candy in it, my 100th candle, or my 100th 'teacher' ornament, I would always feel bad because I knew the coffee mug and candle would end up at Goodwill because I just didn't have room for that many of them nor do I even drink coffee. Oh yeah, and PLEASE, NO MORE lotion!!!!!!!!!
The best gifts I received were one that the kids made. Christmas ornaments are great as long as they are one that the child made themselves. I got bulb ornaments that the children had painted and they were so cute. Another great present I received was a frame that the child had decorated with a poem inside about how I had become a special person in their life. I'm sure both of those things can be done rather cheaply and are treasured.
Is it more important to you to spend $10 or $20 on something the teacher will really use/keep or spend $5 on something they will be throwing/giving away?
Another good idea is personalized note papers. Teachers can always use them! If you aren't into making things, I also always appreciated $20 cash in a card (remember daycare workers are VERY underpaid and every little bit counts-even $10 is great!)Or a giftcard to anywhere "safe". Another good gift is something you have baked (but leave out the cookies, we get SO many of them we end up giving them to the kids at snack, we could never eat them all) like banana bread or zuchinni bread.
Another gift to think twice about is a box of candy or cookies for the whole staff. Everyone does that and we end up with just too much. There was one parent who always brought in a hand-made fruit basket, and that WAS nice because we had so much junk to eat, the fruit always balanced it out!
I hope I don't sound unappreciative, but I just don't think it's worth wasting even just a little money on something that will end up being unused or thrown away!