Nesting toys help teach kids spatial relations, and many today combine sturdy construction with stimulating colors and patterns. Of course, most children will be equally fascinated by a spare set of measuring cups, but for a birthday it's nice to splurge. For a nice touch, bundle several items together in a gift basket. Toys that encourage them to match and sort shapes help them develop essential problem-solving skills. Even better, they're tons of fun.
Toddlers love making noise, period.
When it comes right down to it, you just can't go wrong with money. Investing in a savings bond or mutual fund or buying a few shares of stock for a child now means she'll have a tidy little nest egg when she's older. Transform any toddler's tub into a pool of delights with a basket full of water-friendly bath toys. Stock up on everything from hippo bath mitts and soap fish to cheerful terrycloth animals and the requisite rubber ducky. As she gets older, her bath time friends will be an outlet for pretend play and other imagination-driven adventures.