To make fun gift baskets for children, pick age appropriate books & then use the stories as themes for your kids gift baskets. The examples below will help you come up with a creative child gift basket.
With my own children, I have found that they enjoy listening to books on CD that are far above the level at which they can read - & they listen over and over and over - so consider an audio book instead of the printed version.
If You Give a Pig a Pancake
by Laura Numeroff
with pancake mix, a pig-shaped pancake pan, and maple syrup
If You Give A Mouse a Cookie
with all of the ingredients for a batch of cookies and a mug to drink milk from.
The Secret Garden by Frances Hodgson Burnett with a variety of flower seeds, a garden apron or sun hat and a garden trowel.
Heidi by Johanna Spiri with fresh rolls, a box of bread mix or a box of crackers and a variety of new cheeses to sample, including goat cheese. A plush goat. Also, Shirley Temple as Heidi on DVD.