This is a fantastic idea making use of the wooden peg from Activity Village
Instead of buying expensive decorate pegs, a great it would be fun to just get the plain wooden tag and decorate them. Easy and cheap project for your kids.
Ways to do it:
1. Paint with acrylic. Use varnish for protection.
2. Tip some glitter onto it.
3. Cut out shapes of the name alphabets and stick on it.