This is a very simple lacing activity using fabric flowers and cut up plastic drinking straws. I bought the flowers from Educational Experience, an online educational supply store. These flowers have little holes in the centre of each one, perfect for threading. You could also make your own fabric flowers from fabric scraps, or use paper/tissue paper for the flowers.
We cut pieces of yarn roughly a metre long, and tied a big knot in one end to prevent the flowers from slipping off. The kids alternated flowers and straws until they had filled their yarn up. I helped them tie the ends together to form a loop, and the leis were ready to wear.
The younger kids had some trouble keeping the plastic yarn needle on the yarn, so I tied the needle on for them. This allowed them to focus on the threading without the frustration of needing to re-thread the needle all the time. Once they were finished, we just cut the needle off and tied the ends together. The boys (who are only two) did very well with this activity, carefully threading their flowers and straws on. This is a great activity for fine motor skills, hand-eye coordination and concentration. And it makes some lovely, bright leis for dressing up with!