This idea was born when I was trying to decorate on the cheap for Emily's nursery! I have given several sets as gifts including personalized with baby's name:
Here's how to make these:
Paint 2 8x10 canvas boards with desired background color. Let dry.
Type up words in Word (I used Times New Roman font size 160) and print out one word per page.
Use an x-acto knife to cut out black print and make a stencil (save any pieces needed to make the letter like the circle inside the 'b').
Lay the stencil centered on one board and use contrasting color to paint - lift stencil and discard. Let paint dry.
Hot glue ribbon or fabric scraps to the back to make a tie for hanging!
Cost: about $3 per set of two signs.