Several years ago, I discovered the Darice wooden Christmas ornament shapes at JoAnn's. I learned through trial and error that you cannot paint on both sides of a single piece of wood without smearing and other disappointing results, but you can make a sort of wooden sandwich cookie by using two Darice shapes, some mounting tape, yarn, and a little glue. With these, you can make versatile ornaments.
For young children, you might have them cut out and paste pictures on the front of each flat ornament. Working with older children, or amusing yourself, the wonderful world of drawing and paint exists. The steps are below: