I would Second ANYTHING by Hesse, not got round to a thorough read of Siddhartha yet, but Damien is most excellent and The Glass Bead Games is a revelation for anyone who feels there is something just a little bit ill with the mind and motion of our modern age.

Oh, and something along the lines of The Neverending Story (The Silmarillion/LotR), because it's something to lose yourself in with kids and doesn't even have to be read.