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You might consider buying her a rosary, or a small cross or "holy medal" on a chain for when she's older. If you phone a priest you could garner other suggestions, I'm sure.
Are you artistic at all? If you are, and if you could use a baby names site to find out what the baby's name means, you could probably come up wiht something creative to do with that. You could even look up bible passages that have to do with the name meaning and incorporate one or more of them. Even if you aren't artistic, you could do something nice with a word processing program that would be frame-worthy.
My first-born son was born in the same hospital where my maternal grandfather was dying, and at about the same time. A few hours after his birth, I brought my boy down to Gigi's room and took a picture of them together.
Yes I am an Atheist, but was raised a Catholic initially.
I personally believe that the picture idea is wonderful and will be cherished. I would do that no matter what.
If you can afford it, something like a $25 savings bond is nice in a lot of ways. It showed you cared, it teaches them about investing as they can see it grow (even with the small interest rates today... I would get a variable rate savings bond). They can be used Tax free for college and are difficult enough to cash out that it will probably stay there until she is 18. We did this for a lot of our nieces and nephews and they all said that it turned out to be one of their favorite gifts that taught them a lot about investing.
Congrats on being a great grandfather!
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