My mom discovered the Scribble Press Store in New York City and picked up an Author’s Tool Kit ($28.95) as a Christmas present for my son a few years back. He LOVES writing stories, and this was an awesome gift idea. It is a design your own book kit. There are a variety of page layouts included in the kit, and the child writes a story and illustrates it. The kit also includes templates for a cover page, dedication page, and an about the author page. Once the pages are completed, you mail them back to Scribble Press, and they professionally bind the book. The book binding fee was included with our gift, but you have the option to order extra copies. Wrap the extra copies and give the finished books as a gift at the next holiday. It is the gift that gives back!
If you happen to live in New York City, you should look at the class and party options at their store. I also noticed an app and online book functions on the website that would be great for teachers (or parents).