Found a wonderful site with lots of great arts and crafts for kids, trying some out with my little one:

The hand shaped ring holder a beautiful little memento to treasure!

This is the handprint keepsake from the same site http://www.mamapapabubba.com! On the site you will also find for making ornaments and also squishy soap which we will be trying also. Most projects use household items or stuff you can pick up at any discount store.