You will need white cardstock, black sharpies, red copy paper, red yard, red watercolor paint, crayons, stapler, and single hole puncher.

Step 1:  Let the children draw a design with black permanent marker.
Step 2:  Color with crayons.  I used a special crayon for construction paper that gives a little more sheen.

The best red wash I know of is the Stockmar paints.

Step 3: Paint a wash of red watercolor over the entire paper.

Paint every white place!  Let it dry.

Another student's work.

Step 4: Fold the paper in half.  Cut slits 1″ thick.

Step 5:  Open up the paper and connect both ends to form the lantern – overlapping a little.  Staple at top and bottom.  Push down lightly to create a fuller lantern.

Step 6:  Hole punch two holes at the top of the lantern.

Step 7:  Tie red yarn on to create hanging string.
Step 8:  Cut red copy paper into 1″ x 11″ strips.  Staple to top edge and bottom edge.

Hang where ever you wish to spread a happy smile!