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I love this! You could use newspaper, magazines, or old books. And if you don’t have a printer you could easily trace your own letters, or trace alphabet stickers.
Check it out here >>> Typographic Gift Wrap Tutorial
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This is a great idea. You could also use leftover scrapbook papers to make letters. After reading this, I think I’ll do mine on the computer with a light outline to avoid making the letter templates. Thanks for posting it, I am getting more ideas now!