I have used a lot of small toys as decorations on a Christmas tree, and had some small wooden blocks sitting around.
A bit of sorting, and a bit of stacking, some wood glue, a small screw in hook, and something to tie them onto the tree.
Some spell out words, some are just random letter or number blocks, and even when there is a word on one side, the opposite side is random!
I have single blocks, plus stacks of 2, 3 and 4 blocks scattered over the tree, mixed with other small toys and some snowball pompoms.
Simple but nice!
Oh, I used red yarn to tie them onto the tree.
Look at the second photo again … the tree has fabric foliage!
The pompoms were made the same year the tree was made, but the original decorations were looking jaded, which gave me somewhere to put the toys.