Here are a couple of ideas my daughter and I tried out. These are frugal and fun and will make your tree look beautiful. Your little loves will probably have some fun too.
The first is a salt dough.
4 cups of flour
1 cup of salt
1.4 cups of water
paint, glitter, and cookie cutters
I made the dough first and then rolled it like I was making cookies. We used cookie cutters to get Christmas themed shapes and put a hole at the top for a string or hook. You'll want to make the hole a little bit bigger than needed because it might shrink as you bake.
I then baked the "ornaments" at 350 degrees for about 7 minutes.
The hard part was being patient enough to wait for them to cool. Once they did we had a fun time painting and decorating. My 5 year old loved this!
My second idea uses egg cartons. I cut two of the small compartments out and painted white to create a snowman.
We then used felt and paint to decorate. I forgot to take a picture of the final project, but they are quite cute.
I have seen a similar idea turning the 2 egg holes into a penquin.