Since I've had kids and starting sending Christmas cards consistently, I realize how much time and effort not to mention money people spend on Christmas cards. So a few years ago I decided to recycle them in a way that we could use them all year long. Its turned into a yearbook of sorts, I use it to point out friends kids when we're going to visit them. The kids also use it to help them remember activities we've done with different families.
Choose a small photo album--4 x 6 will do. I have a small one that I got on clearance from a store a few years ago.
Separate your Christmas cards by choosing any pictures of friends and family that you'd like to use.
Take a photo card and trim off any excess that won't fit in the 4 x 6 album.
Before:
Repeat this with all of your photo cards, inserting them into the album when they're the correct size.
Now you have a photo album that's perfect for your kids. (My little guy was pulling it out of my hands before I could finish!)