My friends had a small holiday party the other day. Small, as in a tiny studio apartment in the Village. Small, as in not too many people. Small, as in the tree was about two feet tall (a living tree in a pot - well done!). Small, as in a few hours on a weeknight.
The problem: how to decorate? It needed to be cheap, small, fun, and no-fuss. We put together a pack of construction paper, scissors, and a few odds and ends like string and cotton balls. Add a few googly eyes (who doesn't love googly eyes?) and some creative people, and you have a party!
Here are a few specific decorations we made:

This is a mobile I made that is a super-simple way to jazz up any party. With one sheet of thick, stiff paper (I used cardstock), cut a spiral. Attach small paper snowflakes (or origami cranes, or photos, or anything!) with small pieces of string to small holes cut in the spiral. Secure to a doorjamb or the ceiling, and you're done! It looks way fancier than it is.

Here's the tiny tree! Isn't it cute? There is only one "real" ornament on the tree - the fox that we put at the top like a star. Everything else we made! There are lights, paper cranes, and cool paper snowflakes that are actually for scrapbooks or craft projects, but we just tucked into the needles of the tree - a great, easy way to make a tree look amazing for very little money. My friend made the blue-and-white Hanukkah paper chain, and of course we hung a few candy canes in there as well.

A close-up of the adorable snowman my friend and I made - cotton balls, construction paper buttons, scarf, and nose, and googly eyes equals SO cute. In the background is an origami tree painted with little colored dots.

This was our Decorate Your Own Cookie spread! (Could anything be faster and easier than making your guests do the decorating for you?) The toppings are in origami boxes and Hanukkah gelt is strewn around. Try crushing some candy canes for a delicious topping!
Hope you enjoyed our low-cost, eco-friendly holiday party: when all of your decorations are paper, you can save them for next year or toss them in the recycling bin!