What an awesome wrapping idea, take the first initial of whomever the present is for's name and wrap all of theirs with it, you wont even need tags. (unless, you have the same first letter or initial for every child) still a cute idea!
Great idea as the kids wait for their turn to open their gift! - "Color Me" Interactive Gift Wrap for Kids - wrap a gift with plain white paper, and attach crayons instead of a bow. Stamp the words color me, and let your kid decorate their own gift.