The sample Lisa linked to is super cute! Looks like you'd just need some diecut squares, a brad, and a tassel!
Here's a tutorial for making a tassel - if you're making tiny ones I'd suggest wrapping embroidery thread around a fork... lay the hangy part along the tines first so it is already inside your loops when you wrap and easy to tie around your center. Tie the second knot between the tines while you have your loops still on the fork.
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