You sure you want to go with that Red Heart, it might put them off knitting for life!
It's just so yucky. Something a little softer would be nicer and I think you can find it as cheap. Walmart has that wonderful Sugar & Cream that I've made little washcloths out of, it's so pretty (and really cheap). It is cotton but it has a lot of give I think... They also might really like a headband which would be easy and fun to wear.