Start your mini hats by cutting several pieces of the red yarn in about 6 inch pieces. Cut one inch off the end of your cardboard tube.

Fold your first piece of yarn in half to create a loop on one end. Pull the loop through the center of the tube. And with the loop on the inside of the tube and the ends of the yarn on the outside, pull the ends of yarn through the loop. This will wrap the yarn around the tube and secure it in place.

Continue wrapping and looping the yarn around the tube until all of the cardboard is covered.

Lay the little Santa Hat flat on the table and straighten out all the pieces. Place another piece of yarn under the hat, near the center. Pull the ends of the yarn together and tie them in a knot to gather all the yarn pieces together to create a little hat.

Trim the extra ends off with scissors to make a little yarn hat.

Use your hot glue gun to attach the white pompoms around the base of the hat. Glue one pom pom to the top of the hat where the string is tied.

To hang your small Santa hats on the tree, wrap a piece of yarn around the top of hat. Secure it with a knot and then tie the ends together in a knot on top to create a loop.