Depending on your child's age, you can have him/her help you cut out the shapes he/she will be putting on the tree. You don't have to do shapes, of course, but I thought it would be both fun and educational that way. ;) Plus, you can work on colors too! It makes a nice little decoration for the wall or window or, you could go one step further and make it into a magnet or make the shapes detachable like I did in this foam Easter egg craft.
This was a spur of the moment idea when I was going through my 50 billion boxes of craft supplies to make the foam tree above. I thought the cotton balls might be fun and add a little character. :) He looks a bit funny around the face especially, but that's ok. Note: If you have a toddler that doesn't like to have "icky" hands like mine, you may not want to do this one as the cotton tends to stick to fingers what with the glue and all.
Admittedly, I didn't really let Myka help with this one. I tried to get her to help me color the log, but she was more interested in the colored pencils themselves. Anyways, I was going to make the whole thing out of construction paper until I saw the paper bags I still have. I thought this was kind of fun because you can decorate your log as much or as little as you want, PLUS it might be a fun lesson on what the heck a Yule log is for older children.