Craft a Mini Holiday Village - not expensive ceramic, lighted village, but I love this so much more. What a great project to work on with the kids! It would be such a treasure to pull out, year after year, remembering how you had worked on it together. You could even start a tradition of adding a new piece each year. Cardboard could definitely work, if you didn't have access to balsa wood.
DIY Sequin Ornaments...my grandmother taught me how to make these as a little girl. They were so beautiful shimmering in the tree. This year she passed....I would love to teach my kids how to make their very own.