Cut two pieces of construction paper into four rectangles (you should have eight). Use stencils or write letters freehand. Decorate with markers or glitter. Use hole-puncher to make four holes at the top of each rectangle. Thread party string or yarn through holes and use to hang on the wall.
Another thing we did was to make a Sadaqa box out of an empty oatmeal container. I just cut a hole in the top, put black construction paper on the container and decorated it with glitter and gold paper. We also made an Islamic month wheel, by drawing 12 sections onto a paper plate and writing the Islamic months. We decorated it with markers and attached a contruction paper arrow in the middle. Each month they can move the arrow to the proper month.
Last year, we made 30 paper chains and tore one off each day, but this year we'll just keep a chart of the different phases of the moon inshallah.
It's always a challenge for me to keep the kids quiet during the prayer. This year I let them make 'Ramadan boxes' from cereal boxes (they taped gold wrapping paper to box and used string for a handle). Inside their box will be mazes and dot-to-dots covered with clear contact paper so they can do them again and again. They'll also get different coloring pages every day. They have markers, crayons, and small puzzles I was able to find at the supermarket for $1.50. And of course a snack (raisins, nuts, crackers, and dried bananas).
Links for activity pages:
lots of barney, caillou, clifford coloring pages
mazes, puzzles, dot-to-dots