I could go on and on about this topic!  I always advise friends and family to purchase items that are safe, durable, simply made, don't require batteries, and remind you of something that you would have played with when you were a kid. 

In this day and age, it is common for toys to take all the creativity out of playing.  Plan for toys that encourage creativity (dress up, blocks, Legos, Tinkertoys, Bristle Blocks, Lincoln Logs, Knex).  How about art supplies, kids love painting, playing with Playdoh, gluing things, cutting and using stickers.  Another great idea is books!  Books are wonderful especially if you make nightly reading a part of your family routine.

It is always advisable check for recalls of the items you are looking to purchase, as well as the items you already own.  Here is the link to the U.S. Consumer Product Safety Commission http://www.cpsc.gov/

Here is what the experts at NAEYC have to say:

Simple Gift Giving for the Early Years

During the holiday season, we are frequently bombarded with advertisements for children’s toys that are often expensive or inappropriate, and many adults find themselves at a loss when trying to decide on the right gift for that special child in their lives. Selecting toys for young children is an important task that involves decisions about the kinds of interests, motivation, and skills we want children to develop. Any toy given to a child should match his or her developmental age and individual needs.

When choosing a toy, careful attention should be paid to safety and durability--materials should have lasting play value and help provide a foundation for future development.

Following are some ideas for inexpensive, and most important, fun play materials for the early years:

Birth through six months

Toys for young infants should promote their interest in looking, listening, sucking, and grasping. Well-secured, unbreakable crib mirrors, rag dolls, stuffed toys and simple hand puppets moved by an adult are all age appropriate gifts that can either be made or purchased for a minimal amount of money.

6 to 12 months

Infants from 6-12 months are able to enjoy a wider variety of toys which support their social, cognitive, and physical development. Floating objects for bath play, construction materials, simple puzzles, cloth and board books, and balls are durable options for young children at this stage.

1 to 2 years

Toddlers are increasingly mobile and independent. Dressing, lacing, and stringing materials, picture and nursery rhyme books, nontoxic crayons for scribbling, and stacking materials will be enjoyed by one-year-olds, while role-playing toys, pegboards, and large balls to kick, throw, and catch are good choices for older toddlers.

3 to 5 years

Three- to five-year-olds often find enjoyment from materials that promote pretend play and foster their language and social skills. A large variety of books suitable for this age are available, as well as an assortment of blocks, dress-up clothes and simple games, including dominoes, bingo boards, and card games.

6 through 8 years

Primary-school age children show interest in and benefit from a number of specific skill-development toys. They can spend hours with art and crafts materials, particularly washable paints, clay, collage equipment, and small beads for jewelry making. Books and more complex games with rules and turn-taking are also appropriate, and natural objects (stones and shells) can pique an interest in science and the environment.

Keep in mind that the holiday season can also be stressful for children. It isn’t necessary to give a child a room full of toys in order for him to have fun. Sometimes the simplest pleasures are the most enjoyable.

National Association for the Education of Young Children

Additional Resources

Bronson, Martha B. 1995. The Right Stuff for Children Birth to 8: Selecting Play Materials to Support Development. Washington, DC: NAEYC. #312/$8