An interesting, low cost and safe alternative to candles are the many "flame-less candles". Otherwise known as electric, fake, candles. These are usually a simple battery pack and one or more LEDs. These usually don't provide task lighting and really aren't suitable for use as a flashlight but for low ambient lighting, enough light to comfort the kids and avoid bumping into the furniture, they are good.

I've seen them selling for around $7 but on sale for around $2.