I'm making a concerted effort to teach my kids about Advent. In addition to putting treats in our Advent "house", I'm including a verse from the Bible that anticipates the birth of Jesus. We also have an Advent wreath and light it every night as we read the verse.
Another new tradition (can it be a tradition if it's new?) is to set up our "Bethlehem" and populate it one person at a time. We have a Fontanini set and they name each person and provide a back story. I know they are not Biblically based, but I want my kids to understand each person and his/her perspective living in Bethlehem at the time of Jesus' birth. Here's an empty Bethlehem:
My son mentioned the sheep were dead, but they are just sleeping :)
So what are you doing to prepare? Are you preparing for "Christmas" or Christ's birth? One more reminder: