I snatched up these books from Scholastic when they were on sale for $1 each. I used my points, and they were free! Also, it's always one of their favorite books.
I grabbed 100 CD's for $20 on Amazon.
I found these colorful "Memorex Keepers" soft plastic cases at Target for less than $6 for 50 of them.
I burned each little one a CD with 32 of our favorite songs. I have done this every year and they love it! The best part is that it only cost me 32 cents per child! Yay :)
I also printed up labels for each CD and book. Here is a free download of the book labels. It looks funky here, but I promise the font is super cute when you download it. Enjoy!