All three of my children went through in-home day care. As she is a day-care provider and not just a sitter, I think you do need to give her something at X-mas. Most of the "experts" will say you need to give them something in the amount of a weeks worth of pay, but honestly, at Christmas who can afford that?! Each year we did something different; gift card to a restaurant or movie theater, one year I put together a large gift basket with homemade goodies, crackers and cheeses (that way it was for the whole family, and one year we did just give her a cash bonus. We never celebrated anything for her kids unless we were invited to something (which was only graduations) Every once in awhile I would try to remember to do something nice (a box of chocolates on valentine's day, a spring bouquet of flowers, etc) After all she is providing love, care and support for your child. Even though you are paying her it still is nice to give other gestures of your appreciation. As far as the other kids, as others mentioned, we only provided a gift if they were invited to a party. Half the time I didn't even know it when it someone's birthday. Our daycare provider was really good about keeping things low-key. Congratulations on your little girl!