Cut scrapbook paper 3"x3 1/2" and decoupage to the front of the block. I used an actual decoupage medium, ModPodge, but you can use watered down white glue.
After you have the paper decoupaged on and it is dry you can do your lettering. There are many inexpensive stencils that can be used. You can purchase them at the craft store for about $2-$5 and they can be used over and over. Or if you are really talented you can put your letters on by hand. I however found alphabet stamps on clearance at Hobby Lobby and used those. You can use them over and over so unlike vinyl lettering your price stays WAY down.
Use craft paint to put on your lettering. You can also do a clear coat over that to seal it all, or use your decoupage to seal it. There you have it. Cute letter blocks, that can say anything you'd like. Obviously these are not the same finished product but you get the idea!
I gave these cuties to a friend for her birthday and they were free! I already had everything at home that I needed.