Write a letter to your child or grandchild each year and include money for grad gift. I like this idea of writing a letter, and even adding money, but I think it'd be better to go longer than a grad gift. Wedding, first home, first child?
cute little book nook reading center for kid's bedroom or playroom - just frame favorite book covers, hang letters to spell out read, and add low shelves for kids to reach books. would like to use the ikea spice racks that are super cheap for shelving.