I wouldn't say this is a great project for kids, but older ones could cut out the circles now that the scrapbook industry has made that process much easier and quicker. (I used to trace quarters and cut them with scissors.) Instructions can be found here.
This is a great use for Christmas cards you can't bear to throw away. You could punch all 20 circles out of one card for a cohesive look, or maybe just the focal points of several different cards that coordinate. I just made this wedding one with my dear friend Reid's engagement party & wedding invitations and her thank-you envelope liner. I used a 1" circle punch and it makes a 2" diameter ball. Not sure if the ratio is the same for larger circles, but I would stick to 1"-2" unless you're making one to hang in a doorway or be part of a centerpiece. I suggest using tacky glue and enlisting the help of a pack of alligator clips. 
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You made us one several years ago and we still hang it on our tree every year. I think of you every time I see it! Thanks.
Knowing there's now a circle punch for the project makes it seem like a good craft, I'll have to look into that...
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