Side note: This would be an excellent way to reuse cute gift bags and cards all year long; not just at the holidays.
I got the hole punch at Michael's for less than $10 (yay sale). Hint: it's near the scrapbooking section, in the row with all the scissors. I initially found one for twice the cost with all of the Martha Stewart craft stuff. Persistence paid off here in looking for an alternative.
I'm a little OCD about wrapping gifts. I like to match theme and if possible, match the wrap to the recipient. While this year's gift tags were very nice, I didn't have too many that were childish and cute for my nieces and nephews. Making my own, I was able to do so!
I also came to accept that the tags were very fun if a bit off center and cropped off parts of the design. They're spirited this way. :)