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Tape a number 1 on the canvas then let them finger paint to make their first work of art to hang in their bedroom. OR... Tape their age numbers each year and do a smaller version to send to grandparents and family. Maybe even cards, thank you notes, etc.
Cool Idea..1st Birthday Time Capsule - spray paint an old tin and mod podge a picture from baby's one year shoot and a message. Ask everyone to bring something for it, and have everyone sign the tin as well. I think you could do it every year