It's their first child &I don't think she knows much about babies. We're on a tight budget &I want to get them things that will be useful/used a lot. What are some good practical gifts that aren't too expensive, things that will be needed? 

Diapers, Burp Cloths, Pajamas 

I'd definitely say onsies, diapers, wipes. 

One thing that I got at my baby shower, that only cost about $5 and it was one of my FAVORITE and most used items was a formula dispenser. They have 3 compartments for formula and you take it in your diaper bag so that when you get out, you have you however many ounces of water, and then you just pour it in without having to take a bowl or the formula can. That is if she's going to use formula. 

Gift cards are always great too!! That way they can pick up things they wanted but didn't get at the baby shower. Diapers and wipes are always great! 

Gift cards are always great too!! That way they can pick up things they wanted but didn't get at the baby shower. Diapers and wipes are always great! 

Gift cards are always great too!! That way they can pick up things they wanted but didn't get at the baby shower. Diapers and wipes are always great! 

any of the little random things. Like butt-cream, hair brush, soap, or decorated wipe boxes to make them feel specail and unique. 

I would have to second Faith and Missy's suggestions.. and add a baby book since she doesn't know much. I have a friend that just had a baby and she has sooooo many questions that would be answered if she had a baby book. :P 

My favorite baby thing is my moby wrap. My youngest is a year old now and I have used it at least a few times a week for her whole life. If you know how to sew it would be very affordable. With babies there is always a need for more storage so a cute basket full of essentials would be great. My favorite cream for diaper rashes is Bag Balm, but I don't know where you can buy it here. I just got here and haven't needed to look for it yet.