Wrapping paper of course! First, its fun to wrap, and wrapping everything the night before really makes it feel like Christmas. Second, It’s neater. You can stack things if they are wrapped, you can’t do that with gift bags. Third, It’s more fun to unwrap. Pulling your gift out of a bag is no where near as fun as ripping paper off of it. The only time I use gift bags, is if the present is an awkward size or shape. Or I don’t have wrapping paper.