This past Christmas I found an idea online for turning cereal boxes into gift bags!
I particularly liked this idea because I could wrap the cereal boxes in my holiday paper to match the rest of my gifts. (I'm a bit OCD that way... I blame my mother, lol.)
It's also a great way to recycle and also save on having to purchase gift boxes! (You can also use oatmeal, granola, instant potato, or any other box you have handy for different sizes.)
Here is an online tutorial to help walk you through the steps with pictures: http://www.instructables.com/
First: Get your empty box and cut off the top tabs so that it resembles a bag.
Next: Wrap your box like any other present, but do not close/ finish the end that is for the opening.
Third: On the opening end, fold down the paper inside the box. You can either secure it with tape or spray adhesive.
Last: With a hole punch, punch two holes on both sides. Then string through ribbon and tie for the handles.
Here's a picture of one them I made at Christmas: