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Glue a red felt hat cap on his head. Then at the middle of the bigger ornament, glue a strip of black paper to serve as his belt. You can glue a patch of black felt at the bottom to serve as the base, and Santa's boots. Make all of the body parts look like Santa Claus with bits of felt or coloured paper.
Cut green and red construction paper into thin strips. Search for used Gift Wrap so you can recycle those. You can decorate the strips with glitter glue and Christmas writing.