I have started a stepping stone collection of my kids for each year. As they grow, so do their hands and feet! You can buy the stepping stone project at Micheals. It comes with a mold, plaster, colorful stones, and then your child can make a hand print or foot print into it. Don't forget to carve the date in! They look so pretty in a little garden. We also have made them for Mother's Day gifts for all of the Grandmas.
Another idea that was a hit...Coffee mugs! The kit is also available at Michaels craft store. It comes with a white porcelain mug with permanent marker for your little one to embelish with. My family loves coffee so we would put a gift card for their favorite coffee shop inside the mug as well!