I whipped up these cute, easy and CHEAP classroom favors for my son's class this year. Pencils are a nice alternative to candy.
Pencils -- Target ($1 bin)
Cello Bags -- Hawaii Paper Party (size 1" x 8")
Gingerbread Circle Tags -- Lauren McKinsey (my son loves "gingies")
Twine / Punch -- Any craft store
Each cello bag holds two pencils. Make sure you get the kind of cello bags where the top folds over and sticks closed, this makes it so much easier. Then you just punch out the tags and tie around the bags with twine. Oh and the gingerbread tags are editable so you can add your own child's name or a holiday message.