My wife and I are partaking in the Elf on the Shelf phenomena that is going on this year. What is that you ask? Straight from the ultimate resource (wikipedia):

The Elf on the Shelf

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The book was self-published in 2005 by CCA and B Publishing in Marietta, GA. The Elf on the Shelf comes in a keepsake box that features the hardbound book and a small pixie scout elf. Written in rhyme with accompanying watercolor illustrations, it is a Christmas tale of how Santa knows who is naughty and nice. The described tradition of The Elf on the Shelf usually begins around Thanksgiving and lasts until Christmas Eve, when the elves return to the North Pole until the next holiday season. The book spent time as the number one best-seller at Barnes and Noble's website.^[1]

The original story

The original story was actually created in the early 1960’s, by Flora Johnson, though Christmas shelf elves were made in occupied Japan since at least the late 1950s. Many of these elves are referred to today as "knee-huggers" and are clearly marked with a 'Made in Japan' sticker.^[2] Johnson most likely was familiar with these dolls. The original story involved a little elf called Christopher Pop-In-Kins who visited her children during the holiday season. Year after year, the elf returned. Then, in November 1983, Flora received a call from her very excited grandson: the elf had just “popped in” to his home! At that moment, Flora knew she had to share her own elf tradition with the rest of the world. In 1984, Flora Johnson, 59, began writing a story about a little elf who visits children during the holidays.
Over the next fifteen years, Flora made over 10,000 Christopher Pop-In-Kins elves at her kitchen table. “Book One: Christopher Pop-In-Kins Pops In” was hand-published by Flora’s husband Al and included with every doll. Flora traveled around the country, appearing on television and radio, and giving interviews to reporters. Christopher Pop-In-Kins grew in popularity and was available in specialty stores across the United States.
In 2004, years before The Elf on the Shelf, Christopher Pop-In-Kins earned the Choice Award at the Chicago Trade Show and received favorable notice at Toy Fair in New York City. Now in his 27th year, Christopher Pop-In-Kins is one of the oldest, most loved elves on the market. In recognition of his longevity, Christopher Pop-In-Kins was named Dr. Toy’s Best Classic Toy Award for 2011.

Plot

Once everyone goes to bed, the elf flies back to the North Pole to report back to Santa about what activities, good and bad, took place throughout the day. Before the family wakes up each night, the scout elf flies back from the North Pole and hides. By hiding in a new spot each morning around the house, the scout elf and the family play an on-going game of hide and seek. The Elf on the Shelf explains that elves get their magic by being named. In the back of each book, families have an opportunity to write their elf's name and the date that they adopted it. Once the elf is named, the scout elf receives its special Christmas magic which allows it to fly to and from the North Pole. However, the magic might go if touched, so the rule 9,000,000,000 for The Elf on the Shelf states: "There's only one rule that you have to follow so I will come back and be here tomorrow: Please do not touch me. My magic might go, and Santa won't hear all I've seen or I know." Although families aren't supposed to touch their scout elf, they can talk to it and tell it all their Christmas wishes so it can report back to Santa accurately. On Christmas Day your elf will leave for the rest of the year until Thanksgiving comes.

Our girls named our elf, Errol, which means "to wander". Here are the "hiding" places we have come up with so far: