Well, I got out of hand alot in my young years. My ma and dad never gave me coal though. Said that even though we've been bad (or, rather, less then good) that they still loved us kids enough to show it through. Just promise to be nicer.

It all depends on how old they are. If they're young (6-9) they probably won't learn that coal = bad, and they'll still be mean through out the year. But if there 10-12, they'll learn, and learn to use that coal against you.

Overall though, I'd give kids gifts just to show the love. Evantually they'll learn that they're causing their parents hardship, and try to lighten the load somewhat by being nicer.

As for ages 1-6, it's your call. I ain't got alot of philosphy in that area.