This is a SUPER cute holiday/Christmas tradition for kids if you haven't heard of it yet! I'm posting it here because there is no 'Project Kid' group AND it's a tradition you want to start early.
I found this the other day at Borders. . .it's a book and stuffed elf. . .although I think a creative, money saavy DIY parent would find an inexpensive, less creepy looking elf substitute :) I have to say. . .I'd use a reindeer, lol!

THE TRADITION
From My Family to Yours,
This charming tradition began for our family when my children were very small. Like most children through the ages, they wanted to know how Santa really knew who was naughty or
who was nice. Their answer, as in my own childhood, came in the form of a small pixie-elf.
The first time the elf arrived at our home, my children officially adopted him by giving him a name. Each year he would arrive around the holidays, usually at Thanksgiving. His
sole responsibility was to watch the children's behavior and report it to Santa each night. The next morning after the children awoke, they discovered the elf had returned from the North Pole and was now resting in a new and different place. My
children would race each other out of bed to try and be the first to spy him in his new position.
Over the years the tradition was perfected and rules were introduced. For example, to better preserve his mystique the children were not allowed to touch him but talking to him
was a different matter all together. My children shared many secrets with the elf, and while he was under strict orders not to talk to them, the elf was under no such orders where grown-ups were concerned.
Unwittingly, the tradition provided an added benefit: it helped the children to better control themselves. All it took was a gentle reminder that the "elf is watching," for
errant behavior to be modified.
I never dreamed this simple tradition would lead to so many treasured Christmas memories for our entire family. It is my earnest desire that The Elf on the Shelf: A Christmas
Tradition will bring as much joy to your family as it has to mine.
Enjoy this tradition, and MAKE IT YOUR OWN!