123 learn online shares a Christmas sun catcher using contact paper and pieces of ribbon and a hollow ornament frame. She uses an ornament outline from the web using an image search. In these ornaments the kids use squares of colorful paper. Other shapes or even shapes of items such as candy canes or Santas could be used as well. She also says that she sometimes uses letters to spell the kids names.
Good for ages 2 and up.
Get the instructions here:
http://123learnonline.blogspot.com/2010/12/christmas-ornament.html