A friend of mine from work plays Santa durjng the holidays.  Last year I invited both sides of our families to our house 2 weeks before Christmas and had Santa pay us a visit.  I'm doing it again this year but I'm not sure if everyone will be joining us again or not.  If the whole family thing doesn't work out I may just continue to invite him for to visit with my boys.  My oldest is in Kindergarten this year and while we've always told him why we celebrate Christmas I think this year it's really starting to sink in for him.  He goes to a parochial school so he's hearing it from more than just mom and dad, I think that's making a big difference.  Because of this I really want to start a tradition that is more focused on the reason for the season, but I'm not really sure what we'll do just yet.

Since our kids are fairly young, we don't have a lot of traditions yet, but here are a few things I like to do:

I buy those photo frame ornaments for each of my children. I try to buy frames that have a year imprinted on them, but that's not so important (I can always write the year on the back). My goal is that when my kids are all grown, I'll have an ornament for every year of their childhood.

Last year, when my daughter was 3, we did a Countdown to Christmas. Now that she's older, I would like to do something like that every year. Last year it was just gluing a cotton ball onto Santa's beard on the corresponding number, but she thought it was great fun.

My sisters and I get together with our kids to decorate Christmas cookies. I think it started the first year I lived in my house. I had my then 3 y.o. niece spending the night and she and I decorated cookies together. We had so much fun that it just evolved from there.

I just seen on TV the Elf on a Shelf, it comes with a book. There are rules to follow etc.  I thought that was pretty cool and may have to check into one.