Well my parents do not have an answer so I decided to google out the answer. Apparently it has to do with pagan origins and Yule Log.
Extracted from About.com
A special log was chosen on the eve of Yule, for the holiday fire. A small piece from last year's log is used to light the fire. The lighting of the fire was a festive family event, to hurry the return of the sun. Charred pieces from the fire would be kept to protect the house through the coming year. The woods most often sought for the Yule log were birch, oak willow or holly. Today, the Yule log is sometimes represented as a log cake instead. Or a small log is decorated with candles. The burning of the Yule log is a well-known tradition, but it's not often done outside of the Pagan community anymore.
Interesting!
There are other pagan traditions which you can read from here
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