I always wrap presents, christmas birthdays whatever. I can not get over the fact that a present could be a present without it being wrapped!!!!
So even if they are small, I do wrap, they love unwrapping, usually the wrapping paper is the best present they have had if they are really small. But Rayan is 2 and he knows if it is wrapped it is a present. With birthdays he even helps me wrap other people's presents, loves it!
But I guess everyone goes for what they like best.
Oooh, and saving on wrapping paper is not very necessary over here (Holland) as most shops wrap your presents for you. They usually even ask if it is a present and in November-december even for what occasion. Oh, also round mother's day and things like that. So people who can not wrap have no troubles over here! My husband loves it, says it is not so common in England as here. I never knew it could be different, am so used to people asking if it is a present if you have bought something!!!