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I have just finished my base house in Hearthfire. I adopted two children. They are all nice, I can play tag with them and all. I have an option to give them gifts.

Where can I buy all the gifts? Out of my inventory I can gift them the Dagger, but rather not gift them that, they might hurt themselves.

Wikia says wooden sword, child's doll, children's clothing etc as potential gifts.

I tried Bits n Pieces in Solitude and Radiant Raiments in Solitude for the children's clothing. But they did not have it.

Where can I buy them?

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You can purchase those gifts from general merchants (Bits n Pieces in Solitude, Lucan Valerius in Riverwood, Gray Pine Goods in Falkreath, etc), under the "misc" section.

Note that children's clothing will appear also under "misc", not as "apparel".

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Radiant Raiments has the best child apparel and the hidden chest in Dawnstar has a wooden sword for the boy and a doll for the girl.

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If you have an ingame spouse, then you can buy stuff from his/her store.

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You can check the hidden chest in dawnstar. I always get some form of child item in there or you can just steal the items off of someone else.

They wont hurt themselves if given a dagger.

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