Cut a 4-inch square out of construction paper. Cut a 1-inch square out of the same color construction paper. Glue the smaller square in the middle of the larger square. Cut five pieces of yarn to 8-inch lengths. Hold all the yarn pieces together with the ends even. Tie a knot in the middle of the five yarn pieces. Cut off four pieces of yarn from one end of the knot. Glue the single string of yarn to the middle of the smaller square to represent the tassel.
Give students two pieces of standard construction paper measuring 8-by-11 inches. Place one piece of construction paper on top of the other piece. Help students glue the papers together on one 8-inch side. The construction paper will now open and close like a book. Ask students to decorate the front cover of their books. Before graduation, glue a picture of each student on the inside cover of his book. In addition, print a kindergarten graduation diploma on card stock. Trim the edges so the diploma is slightly smaller than 8-by-11 inches. Glue the diploma on the page opposite the student's picture. Present the diploma at graduation.
Cut five to 10 pieces of yarn to 12-inch lengths. Gather all the yarn pieces together and even the ends. Knot the group of yarn pieces in the center so about 6 inches of yarn will hang from either end of the knot. Cut all but one of the yarn pieces from one end. Place liquid craft glue on the tassel knot and let dry. Feed the single piece of yarn through a metal key ring and tie a knot in the single yarn near the top of the tassel, creating a yarn loop. Place liquid craft glue on the knot and let dry.
Send a note home to parents asking for a baby picture of each student. Ask each student to draw a picture of her hand when she was a baby. Use white card stock for the drawings of the hands. Create a current handprint by painting each student's palm and then pressing the palm onto a second piece of white card stock. Cut out both handprints and glue them to a piece of construction paper -- place the drawing on the bottom left and the hand print on the bottom right of the paper. Glue the baby picture above the baby handprint, and a current picture above the updated handprint.