You need:
baby food jar lids
spray paint (red or gold)
family pictures (close-ups of faces work best) cut into circles the size of the lids
glue
pipe cleaners or ribbon
drill (or hot glue)
Or:
popsicle sticks
paint (red, gold, green)
glue
family pictures
glitter glue (optional)
ribbon
To make popsicle stick frames glue 4 popsicle sticks together making a frame the size needed for your picture. Once the glue is dry you can paint the sticks or use glitter glue to decorate. Once your frame is dry, carefully glue your picture to the back of the frame. If you like you can glue a piece of felt to the back of the picture to cover the pic and make it a little more decorative. Loop a piece of ribbon and glue the ends to the back for hanging.
To make baby food jar frames, spray paint the jar lid with red, green, or gold spary paint and let dry. Cut your picture to fit inside the lid and carefully glue it in. You can glue a piece of ribbon, decorative pipe cleaner or beads around the outer edge of the lid to decorate. Loop a piece of ribbon and glue the ends to the back to hang or drill a small hole in the top and loop ribbon or pipe cleaner through.
A great idea for this ornament is to make these each year adding the date to the back of the ornament. Each year as you decorate the trees you can see how your kids have grown. If you're willing to part with the ornaments this would be a wonderful gift for your child to start their ornament collection when they get married.
Thanks to Nancy for this great idea!