I saw a version of this on My Name Is Snickerdoodle just a couple of days ago and had to try it! It was a quick, cheap activity to do with my 3 year old. We had fun putting it together, it was an excellent letter review for him and we think it's pretty cute!
It's simple. All we did was paint the first letter of each of our names to match the mat and background paper. The "S" (for our last name, Stander) has scrapbooking paper glued to the top of it to make it pop out. I think I still want to paint a little heart to stick in there too. The letters aren't tacked down at all, so they randomly fall wherever they want, every time I move the thing (it's a bit difficult for the OCD part of me to just be okay with that).
So. A $5 frame from Walmart, a $1 bottle of paint and $4 for wooden letters. $10 for art? Awesome!