I have started a bit too. Kids have all the gadgets already (Netbooks, I-touch, I-Pad, I-Phones, X-Box, Wii) So, no big items to get this year. I plan on getting them both a small photo album and filling each pocket with either a gift card or cash. Gift cards will be for stores, fast food, and stuff like skiing etc. Plus other things, but that will be there bigger gift this year.
So far I have for 13 Year old son: Champps GC, Beats Headphones (got on groupon deal), Phiten Necklaces, Fun I-phone cases.
For 11 Year old Daughter: Coach Purse (from outlet on clearance), Aeropostale G/C, Fun I-phone cases.
Niece - Set of 5 Different Sterling Silver Necklaces from QVC.
Still have lots to get as I like a tree full of gifts but it's a start.