Oooh, we've made ornaments every year since my kids were about that age! I don't ever use kits, but I know tons of fun easy ornaments.
There's a great dough recipe, just 2 cups of flour, 2 cups of salt, and a cup of water. Mix it, knead it, roll it out and use cookie cutters. Then you bake it at 225 for 2-3 hours, turning occasionally. Let cool and paint. I write my kids' names and the date on the back of them, I love looking at the ones my now 15yo made when he was 3.
We've made bells out of plastic water bottles. I cut them a little more than half the bottom off, poke a hole through the lid and string a jingle bell through it, then let the kids paint.
There's always pinecones rolled in glue, then in glitter. Messy but pretty! I stuck a ribbon on them to dress them up a little.
Once I traced all their hands, cut out multiple copies on green paper, and used them to make a big wreath.
Here's a great one I'm planning to try with my 2yo this year. Its about halfway down the page, I saw it on a better website before but I can't find it now.
http://forums.atozteacherstuff.com/s...ad.php?t=29185
I know I've got more that I can't think of right now!