Cheap Small Cookie Sheets and a Tub of These Foam Letters is all you need.
I chose foam because it is quiet.
First I let them free play. Then we sorted by color.
Then we spelled our names. I made cards for them to copy the order of their names. We practiced first, middle, and last names.
Sometimes we use these for Sunday centers. Sometimes we use these for quiet time.
I have even used them for spelling words.
Another fun activity that costs less than $16 for years of playtime.
Another use for these Magnets is match the sound to the letter game.
"This letter says Oooh"