A couple of ideas for you...
Grab a few puzzles from goodwill - spraypaint the pieces all green and let dry - then buy or cut a flat cardboard wreath (give that a basecoat of green too) and have the toddlers dip the puzzle pieces in nontoxic Elmer's glue and have fun sticking and piling them all over the base. Sounds strange, but the result is a leafy looking faux wreath you can hang with a pretty bow!
Another one I've done is have them finger paint, when their hands are covered in it I hand them a vase, they grab it to "hold it for me" and voila! You have a vase with their hand prints "holding" your flowers (also makes a great gift for grandparents) but the fun doesn't stop there - the paintings they do in the meantime, at that age level usually consist of covering the page entirely with indistinguishable smears of paint, when it dries, cut out ornament shapes, stars, etc. you could make a garland out of them or decorate the windows, frame them as an arrangement, etc.
Making a ginger bread house is always fun
i would suggest a tie blanket. you can get the kits at walmart for $10. Once you show them how to do it, they would love it! Along with getting some finger paint and paining their hand in brown paint. then let them dip their fingers in other colors once the brown dries and have them put it on the brown. Cut it out and then glue them to a peice of brown paper the length of their head around. They are now reigndeer. Or grab a white shirt and have them make turkey or reindeer on the front. I know i use to get the transfer paper and let them color it then iron the image onto the shirts and they got to wear their creations.
Oooh.. Borax Crystal ornaments! fairly simple to make.. but will need parents guidence
You'd have to cut them out, but you could do felt stocking ornaments. Use red and white felt cut into the right shapes, glue, glitter, sequins, ribbons and etc. Then you let them glue the two peices together and then decorate it. When the fronts are dry (up to 24 hours) flip them over and glue on the ribbon so they can be hung from the tree.
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