I recently made these 'friendship flags' for my son's preschool. They are based on Buddist Prayer Flags.
Each child (& teacher) painted a picture on material and then I've sewed them on to material tape. They'll be hung up inside the preschool, so they didn't use fabric paint, just acrylic. I did a similar thing at home with my family and I have the flags hanging in our loungeroom. They're a nice activity to do and a great keepsake to look back on.