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My two cents would be to graciously accept the gift and use on yourself
You could reciprocate with a nice gift for the little one during birthdays and holidays, but agree, accept it graciously so she doesn’t feel awkward or like she’s putting you out of your way for babysitting for her.
Enthusiast
Always take whatever she is giving you. New moms have a lot of guilt and this is a small way of reducing that guilt. You’re doing her a favor by accepting whatever she gives you.
Chief
Just take the gift cards and enjoy. My parents watch our children 2x a month and we always take them out to a nice brunch or dinner. We appreciate them and sounds like your cousin feels the same way.
I agree with the comments above. But OP, if you are uncomfortable with this, please have a conversation with your cousin on her reasons why and your reasons for why not.
They may be feeling they are taking advantage of you and hence trying to ease their own mind by compensating you monetarily. If that doesn't work you, you both can jointly think through alternatives. E.g. they take you out to dinner (so you both also spend time together).
Chief
Keep the money and thank her. My kids babysit and the price these days is obscene. I am sure you are saving her a large amount of money so it works out.
Take the money. They may feel guilty asking your otherwise. You could always put the money in a piggy bank and give it back when they are older
I would take what she’s offering, and put an equivalent amount into a savings account for the kiddo as a college fund.
Rising Star
So many people try to use their family members as free babysitters. Appreciate the fact that your cousin actually appreciates what you’re doing for them, and enjoy the treats!