Give each child a paper bag. Write their name on the bottom of the bag to help if they get mixed up.
Place a variety of letter stickers in the center of the table. Let each child pick from the pile and place the stickers onto their paper bag. There's not a formal way to decorate these bags, just let them have fun with letters. If they are able, help them find the letter stickers that spell their name. Or have them find the letters to "Happy Birthday." They can even use markers or crayons to write what letters they know onto the bags as well.
Once the children are done decorating their bags, have an adult take the pinking shears and cut the top of the bags to give it a fun zig-zag top.
Fill the bags with toys, pencils, and treats. We chose a toy car, a happy birthday pencil, and a few snacks, including Kellogg's Fruit Flavored Snacks - which are a perfect match.
Fold over the top of the party bag one time. Using the hole punch, punch two holes at the top of the bag, one inch apart.
Thread your party ribbon through the punched holes in the bag and tie it off in a bow.
Now it's ready to go home with a lucky party goer. Here's to a fun and happy birthday!