If you have kids, the chances are pretty darn good that you've decked out your young one with a mortarboard or are about to soon. Graduation ceremonies are becoming de rigeur these days for just about every grade. The question is how should you celebrate and what sort of gifts are suitable for the littlest graduate?

Keep in mind if you give gifts for a graduation ceremony for each grade you are setting up a ritual for years to come, said Elizabeth Pantley, the author of several parenting books. You'll want to manage expectations properly.

1. Rather than throw a huge year-end party each year, go for simple school-related gifts, such as a book, or a box of crayons with some art paper, Pantley says.



2. Consider buying the graduate a gift card at a bookstore. Gift cards help a kid to feel more vested in the book. He or she can go to the bookstore with a parent and select just the right story.



3. You might also opt for a dinner out a fast-food restaurant or a neighborhood place your kid loves as a special treat. Or take your child out for ice cream. A special food outing can be the perfect way to recognize an occasion without going overboard. After all, parents today can sometimes feel like kids have too much already and don't want to shower them with endless presents.
   
   "Focus on the joy of completing a school year and moving up to the next," Pantley said. "Keep your ideas for bigger gifts or parties for major gradations, such as moving from elementary school to junior high school, so that these bigger events can be appreciated as something unique."



4. Other gifts that are appropriate for young children celebrating a milestone are piggy banks, said Mary Jo Matsumoto, a style and gift-giving expert. "Start good financial habits early," she said.
   
   Another option in this vein is to start a savings account for your kids, suggested shopping expert Karen Hoxmeier. At each graduation, contribute to it. "You could also reward good grades by making a contribution to the savings account," she said. "Teaching kids the value of money and the importance of saving when they are young will leave an impression that will last a lifetime."



5. Another gift that also has an educational purpose is a clock, such as a wall clock or a wristwatch.