My daughter loved playsilks, my son animal crackers.

Sophie the Giraffe

"Baby's First Christmas" ornaments. We received four the year my son was born, and I thought they were nice but kind of silly. Now that my son is six, I totally get it. He had a BALL decorating the tree this year because there were these ornaments that existed solely because of him. He oohed and aahed over how "old" these ornaments were and treated them like precious historic artifacts. He especially loved the two that had slots for baby pictures -- he had a great time looking at them as we hung them up, and he's showed them off proudly to visitors since then. It's sweet and funny.

But then I thought about it -- and I still do the same things with the "welcome, baby" ornaments my parents were given when I was born. (Except there were no photo ornaments in the 70s, and even if there were, I wouldn't be telling all my guests to check out my baby pictures. So mostly I just do the oohing and aahing as we trim the tree.)

http://www.amazon.com/Munchkin-3101-Mozart-Magic-Cube/dp/B00004TFLB/

You can't go wrong with Viking cars.
http://www.target.com/p/viking-toy-chubbies-bucket-15-piece/-/A-10278313

Cardboard stacking blocks like:
http://www.amazon.com/Dr-Seuss-Fish-Stacking-Blocks/dp/B002LARAZA
http://www.albeebaby.com/eeboo-read-to-me-tot-towers.html?gdftrk=gdfV21377_a_7c623_a_7c4726_a_7cTTREAD&gclid=CLOLhY_1gLQCFQSf4AodJ3kAyA

A Flensted Mobile: http://www.flensted-mobiles.com/

http://www.amazon.com/Eeboo-Around-Land-Wall-Cards/dp/B000GYUXQQ -And a pack of poster putty (e.g., http://www.amazon.com/Removable-Reusable-Non-Toxic-Poster-Putty/dp/B000BQMFEC/) We like to make words out of them and hang them on the wall. We change the words up pretty frequently.

Generally, stuff without batteries.

Our little one will be only a few months old at Christmas and there's not a lot she needs that we didn't get at the baby shower. So we're getting her classes. You could do play, music, art, or swim classes at places like Gymboree or Kindermusik or the local Y. They are a great way to bond with your baby, and allows baby and parents to socialize with their peers.

Honestly? Nothing. They are too young to know. My pediatrician said she would wrap baby's diapers and food so that there would be something under the tree. I might go with that.

I agree with ctmorgan! A music class is a great gift. Cricket Magazine also comes out with a nice baby magazine that can be kept for years for later book reading. My 9 month old son loves his babybug book series. Personally, I don't want any more toys, so I am making him a couple soft, sewn gifts such as a teepee, cloth memory game, and stuffed animal.

I think it depends on how old your baby is by his/her first Christmas/Chanukah/Festivus! Our baby will be two months old, so we're mostly "giving" her things we were going to get anyway--we needed a nightlight for her room, so I used this excuse to splurge on a silly gnome lamp I've been eyeing for years:
http://www.landofnod.com/gnome-alone-nightlight/f8312
We also got "her" some gifts that are really more for our older son to use with her--music for them to listen to together, stories we can read aloud to both of them, matching pajamas, that sort of thing. If she were older and/or we didn't already have tons of stuff, I'd suggest something like a Sophie giraffe or a crib mobile--not strictly necessary, but fun for a tiny one.
A practical option to suggest to relatives might be a contribution to a 529K plan...or, in a more altruistic mode, a donation in the baby's name made to a charity like Room to Grow, which provides clothes and supplies to babies and kids who have less than our children do.

Diapers! And someone get that baby off the snow.

A NYTimes article that I could not agree with more...

"The best gift any of us can give to newborn babies is to point their sleep-deprived parents in the direction of a good 529 or other college savings plan and then seed the account with a little bit of money."

http://www.nytimes.com/2012/09/01/your-money/navigating-donations-to-529-plans-your-money.html?pagewanted=all

The child won't remember the first and second Christmas. Skip the gifts (let grandma and grandpa buy one or 2 toys) and try to direct everyone to a 529 plan.

Buy holiday gifts when the kids are older...

Here are a few baby stocking-stuffer ideas: Socks, baby food, spoons, binkies, small reusable containers for snacks or babyfood, hairbows/headbands, lotion/soap/rash cream, mittens, winter hat, sippy cup, little board books, etc.

My parents and in-laws have usually gotten our babies toys for their first Christmases, but I wish they would have gotten them diapers or given us a promise for a night of babysitting!

A 529 would be nice, but grandparents and family members are going to get your baby want they want to get them. And, this will continue as the baby gets older.

We used to put together lists for Christmas and birthdays for our son (now 5 1/2 years old), and specifically requested items that were BPA and lead-paint free, and did not require batteries. We also set up a savings plan and requested donations to that. However, after what seemed like the 100th plastic toy that smelled like chemicals when unwrapped from its packaging with multiple ties, and the multiple ride-on toys that bipped and beeped and soon broke, we simply gave up.

Thank goodness he's now into Legos and we can request that - at least it's educational and everyone knows what they are. :)

I agree with the idea of savings bond and that sort of thing. My dad bought a bond for our daughter's first Christmas and he said he'd do it every year. I also wanted to get her some keepsakes even though she was only 7 months and had no concept of what was going on. Books are the best, every year I buy her classic and write a note in it (this year it's Where the Wild Things Are). I also got her a Bla Bla doll because she can keep that forever and it will hopefully be special because it was her first present from Santa. I also started a tradition of getting her Christmas pjs. Of course they don't need or want anything, but I think it's nice to have something to hold onto that they'll remember as their first Christmas gift.

Oh and other nice classic keepsakes I love: Tiffany's rattle/sterling silver comb, Bunnykins bowl/cup, Playsam car, Hans Bolling ducks, Ursa the Bear from Areaware, Marimekko kids plate/bowl set and sterling silver cup with name engraved.

Coming from someone with 3 kids... the best gift for kids- wrapping paper, empty boxes, and ribbons.

They go crazy for them. That's the best part of the holiday for all 3 of my little kids...
Save money and get a few big boxes at the store, and wrap them up.

I think Baby's First Christmas ornaments (especially customized) are nice, especially when the family gets one new ornament every year for the child. By the time they are adults off setting up their own household, they have a starter set of very special decorations. (Assuming they shoose to decorate, of course.)

Can't go wrong with a simple cardboard box.

If the baby was born shortly before Christmas, ask the parents if there are items they didn't receive at the baby shower but could still use.

If the baby is old enough to actually play with toys, then something like a wooden rattle or a teddy bear? Nothing giant or plastic or that makes noise if you're not the one who has to live with it! Classic children's books are also wonderful.

Finally, I agree with everyone recommending baby's first Christmas ornaments. I have a handpainted teddy bear ornament my grandma made for my first Christmas and it is absolutely the most treasured item on my tree.

Taggie blankie- with a crinkly paper in it and ribbon tags all around.

Personalized book http://www.iseeme.com/
Kathe Kruse baby toys/dolls
http://www.amazon.com/s/ref=sr_nr_p_n_age_range_0?rh=n%3A165793011%2Cp_4%3AKäthe+Kruse%2Cp_n_age_range%3A165813011&bbn=165793011&ie=UTF8&qid=1354828647&rnid=165794011

A breathable baby toy: http://www.amazon.co.uk/Safe-Dreams-Safebreathe-Patch-Newborn/dp/B008VOIKJA/ref=pd_sim_by_4 . A perfect gift to please the parents too.

personalized photo album board book with names
https://pinholepress.com/products/mini-book-of-names-faces-85-1-0-01/

The absolute best present? Relaxed (and financially solvent!) parents.

It's really for the parents, but I like those kits that let you make your child's hand print into an ornament. As for the baby, mine really enjoyed her Skip Hop play mat and ring stacker.

We got my daughter (8 months old at the time) a few books, a raggedy ann doll and a topsy turvy doll, christmas pj's, and a radio flyer wagon.

Weird, Pregnant Chicken just posted her list yesterday. It covers all ages' first Christmas.
http://www.pregnantchicken.com/pregnant-chicken-blog/best-gifts-for-babies?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+PregnantChicken+%28Pregnant+Chicken%29

I purchased a life insurance policy for g-son & pay the premium each year which can be cashed in for college if necessary. If not, it'll keep his premiums low & manageable for life.

Books. Begin their own little library of classic children's books. Even very small babies will enjoy Jungle Tales by Jellycat (which is more of a toy than a book):
http://www.amazon.com/Jungle-Tails-Book-8-Jellycat/dp/B000VNY8ZE/ref=sr_1_19?ie=UTF8&qid=1354830766&sr=8-19&keywords=soft+books+for+babies

But other titles include anything you loved as a child and:

Goodnight Moon (or any other book by Margaret Wise Brown)
Madeline
Make Way for Ducklings
Curious George
Stella Luna
The Very Hungry Caterpillar
Chicka Chicka Boom Boom
Goodnight Gorilla
Blueberries for Sal
Where the Wild Things Are
Jamberry
Moo Baa La La La
Philadelphia Chickens
Time for Bed by Mem Fox
We're Going on a Bear Hunt
Mr. Gumpy's Outing
Busy Town by Richard Scarry
The Little Engine that Could
Ferdinand the Bull
Millions of Cats

and many many more.

board books, the boynton ones are great, it's good to start reading to them early

For our sons first Christmas last year, we decided to get one gift for him that was something he needed, so we bought an activity mat. Since we spent our money on one item (and let the grandparents buy the majority of the gifts) we will always remember what it was.

For my nephew it was an old remote control (sans batteries)....it was his favorite thing to eat.

My mother is European and bought my first son a stainless steel feeding set from the Netherlands. This was a family (or local) tradition when she was growing up and she still has her first plate/bowl. My son's set includes a shallow bowl/plate, a cup and utensils.

It was the best present he has ever received. It is beautiful, will last for years, non-toxic and we use it three times a day. I don't know why these sets aren't more popular in the U.S., especially because people know that eating off of plastic isn't healthy. We haven't been able to find a set as nice as my son's online and grandma had to go to a jewelry store in the Netherlands to get one for our second son, who was born recently. She's a flight attendant, so that wasn't a real hardship for her. For those of you who won't be in the Netherlands before Christmas, here's a link to a site we've ordered from but I'm sure you can find others: http://www.silversuperstore.com/baby/tantalyn.html.

First xmas ornament in a lidded box with lots and lots of tissue paper stuffed in there. Present for parents, present for baby, done! Crocheted rattles and PJs are also good gifts.

We didn't get our son any gifts for his first Christmas but I'm glad we got some first xmas ornaments as gifts. And we received some silly elf PJs as a gift that we'd never have bought but looking back at the photos, they were really precious!

Songs and nursery rhymes with an adult or older children, nothing better.

My son was six months at his first Christmas so he got lots of food-related gifts, as we were just starting solid food. My daughter was three days old last year so she got a stocking full of new baby toys. This year she'll be 1 and three days (still a baby, not walking), and shopping for her is a beast! Birthday AND Christmas!

I went to Baby Gap and found a tiny shearling vest in 5 sizes. Luckily, I have a baby relative celebrating her first Christmas. Could be the cutest thing ever!

Our first child was able to stand on her own, so I got a miniature play kitchen (from educo) she could stand at and open the doors, take things out etc. She loved tinkering around and I kept stocking it up with "mouth friendly" things. It really helped with fine motor skills and kept her super busy. Our 2nd child has no interest in standing at this point so he will simply receive another stroller activity chain from HABA. Their products are safe to mouth and it keeps him busy while out walking. Also, I have signed us up for a mommy and baby music class since he seems to enjoy music.

I have a very similar situation - my younger one's birthday is just after Christmas. Makes it really challenging when they are little. Hope this helps a bit: http://gotkiddos.blogspot.com/2012/12/babys-first-gifts-inspiring-ideas-for-0_5139.html

I love baby ornaments, and love giving them as gifts. My best source is babysfirstchristmasornament.com as they turn over often, and everything on their site can be personalized. I've ordered 7 or 8 times and the writing always looks like a caligrapher. Very professional.