globally and culturally aware kids. making sure that they are not afraid of and neutral about other religions and cultures, and most important of all, encouraging them to have normal friends from different backgrounds. kids may not indulge in similar activities, because of what is prescribed by religious, cultural or family values, but may have a friendly acknowledgment of each other as fellow citizens.
how do you raise kids like that, if you yourself are not friendly, open minded, and warm towards people from other cultures?
I would never want my children to be part of religious celebration of other religions... I would expect them to accept that particular event though only to a point that be mindful and respectful to people who observe it, while maintaining the belief that it is not allowed for them.
It is very important for kids to grow up respecting every race, culture and religion, but without being too judgemental or critical, knowing their limits and foundation. The best way to achieve that is by setting the right example.
For example, there are some kids in my daughter's Qur'an class who openly say so and so are "bad" people. So my daughter who know families of that so and so religion, asked me why they are "bad" and I was like, no one is bad. Allah made everyone. We are happy to be muslims but we should not call other people bad.