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My mil does this. Mainly because they feel like they have extra money and just buy random stuff if it doesn't look like they've bought enough for the holidays. Most times we just wind up donating to goodwill.

It depends, but I usually graciously thank them and then hoard. If it's my mom and I know I won't hurt her feelings, then I will return it because I feel bad and don't want her to waste her money on something that won't get used. I know she appreciates that! Can you save it and maybe your daughter will appreciate it / like it in a few years?

Goodwill. So many trips to Goodwill.

@SugarplumsMom: Honestly, if my mom bought my son a similar thing (I don't know what specifically, but let's say a leather mini briefcase) I'd totally let my son just have it. He'd get a kick out if it, putting stuff in it and my mom would be overjoyed. And then when it's been through the paces and no one wants it anymore, we donate it.

Is it the gift or something else in this case?

I have the opposite problem with DH. He sent artist quality colored pencils to a friend's kid. Apparently the kid (7 years old) loves them but I had to ask DH that crayola colored pencils would have been perfectly fine for the kid. I don't think the kid realized what how good (and expensive) Prismacolor pencils were. DH is an artist and went to 4 years of art school and he uses Prismacolor. DH said he wanted to give him something nice. I'm perfectly fine with my Crayola colored pencils. I think I need to reel him in and try to get him to give kid appropriate gifts. I tried to explain to the DH that those colored pencils will probably lost or broken within the next year. $3 pack of crayola pencils or $20 pack of Prismacolor pencils. Yeah...

As for your issue, I don't have that issue. I don't think of how much gifts cost. I know my sister buys stuff from Kohl's and the price tag is usually shipped with it. The price looks marked up but I know my sister probably used coupons and probably got a good deal. Any chance the backpack was marked down to $5 or something?

@bluestriped bee: I'm sure I was older than 7, but I did actually have a set of prismacolor pencils and chose them over my crayona every time. If the kid is really into art they might notice.

My 3.5 year old would LOVE this gift. She's obssessed wit bags/backpacks and the leather would make her feel fancy like mommy. If it gets dirty, oh well. It's hers and it's meant to be played with so dirt isn't the end of the world.

@SugarplumsMom: I say just let her use it and have fun. It will get dirty, but who cares. "Kids will be kids" and grandmas will be grandmas

I dont think thats super impractical! Use it! I mean, if it gets beat up or whatever, at least you got some use out of it and you can tell grandma, yea we loved it but a kid friendly canvas backpack would be more practical next time.

I know we should be grateful for any gifts and it's the thought that counts so I don't want to sound obnoxious, because we do appreciate the fact that the grandparents like to buy things for our kids. But... I get frustrated with the in laws who love to buy toys way out of my kids' age ranges. Like for Halloween they sent these glider things that came with a million small parts and said for ages 8+ when my kids were 1.5 and 3 or the Christmas before when my youngest was a baby and in the stage of putting everything in his mouth, they got kind of like a lego type kit with lots of small pieces for ages 6+. Last month they bought those paddle things with a small, hard ball attached. Super safe for a 2 and 3 year old! Mostly we just say thanks and either send them off to my older nephews or trash them if they're junk.
My step-mother just loves to buy annoying toys. Her latest is to get these Hallmark plush toys that are shaped like numbers and will sing really annoying songs when you push them. Not impractical, just annoying. They normally get donated.

@skipra: oh my, Legos... my parents got DS a huge construction Lego set for his third birthday. And he can sort of put it together with help, but then he'll take the bulldozers apart and scatter the pieces everywhere, and he doesn't get that if you lose one you can't put the thing together ever again. It was slightly stressful for me while he played with it. Thankfully he's let me put it away and it'll come out again when he's a bit older.

My in laws can't buy an age appropriate gift, despite having raised three children. It's unclear to me wtf they are thinking. They just bought us two child sized arm chairs and an ottoman at a yard sale 10 hours from their home. I literally have no where to put these things, and my husband still hasn't told them we don't want them...it drives me nuts.

@wrkbrk: My MIL would be pretty upset if I took a single thing she got for LO to Goodwill! She takes inventory every visit

My mom is pretty good at listening to me about things that LO will like and use. It's important to her that gifts be practical. My MIL just enjoys shopping for LO and picking out cute things even if they are not always the most practical. (Never white leather backpack level though!) I know it doesn't really matter to her if it's practical so I don't even go there! We just say thank you and LO wears what my MIL gives as much as makes sense.

If I were in your shoes, I wouldn't worry too much about the bag getting dirty but I also wouldn't use it for preschool or anything. If there's not much occasion to wear it, oh well. The closest comparison I can give is a formal fancy dress my MIL got for LO. She wore it to a couple weddings and a friend borrowed it for a tea party. She can't exactly wear it to the playground so I don't stress that it didn't get much wear.

I have promptly returned, donated, or put out on the stoop probably 75% of the gifts I've been given for years--I don't keep a pile of impractical/unwanted stuff, no matter how kind the intention.