What is the ruling on money given to a newborn upon their birth, and how should this taken money be returned: should it be the same amount, or more, or should I just buy a gift?

It is permissible to exchange gifts among relatives, neighbors, and friends, as the Sharia encourages it. The Prophet, peace and blessings be upon him, used to accept gifts and reward for them. The intention of those exchanging gifts should be to seek reward from Allah. If the gift is intended to receive something in return, it falls under the category of a gift of reward, for which something similar or more must be returned. However, the recipient of the gift is not rewarded for it nor does he incur sin. It is similar to a sale, so food for food or cash for cash should not be returned to avoid usury. Some scholars are of the opinion that returning something similar or rewarding for it is not obligatory at all.