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I would try: Mini wooden letters, use the exact same idea, maybe add some cotton balls & felt for texture, hot glue a mini Santa hat on some of the more "edge-ier" letters, and use a satin or silk ribbon to hang up for decorating ;)
A Thanksgiving Advent - Teaching kids to have hearts for gratitude before the Holiday season. Print and fill out these cute "I'm Thankful for" cards each day in November. Read them on Thanksgiving.