Pine cone ornament. If you get a certain type of pine cone it looks like a mini christmas tree. Put glue on tips of pine cone "branches" then sprinkle on glitter. Glue a loop of yarn or ribbon to top of cone to hang on tree. You can put a bow over the place where you glue it if you want.
Or buy a chipboard photo album and have the kids decorate the covers. They can put their photo in as the first one.
Reindeer ornaments are easy, for each one you need 3 popsicle sticks, a red pompom for the nose, and googly eyes. A site like Family Fun magazine probably has instructions, email me if you need further info.
Pomander--get an orange or lemon, stick whole cloves in. May need to poke holes with small screwdriver or pen or pencil tip first, esp. for your 2 yo. Leave plain, or wrap with ribbon to hang, or wrap in cloth to put in dresser drawers (they smell pretty).
Have fun!
K. Z.