What you will need is: air dry clay (I got mine at Panduro), some cookie cutters, and different stamps or things to stamp the clay with to give it some pattern and texture
Roll out the clay to your desired thickness. Stamp the clay with different designs and patterns before cutting the clay with your cookie cutters. Carefully remove the clay from the cookie cutter and poke a hole around the center of the ornament with something sharp and round (a straw or a skewer would work). Place clay ornaments on some baking paper and let it dry. It takes about 2 to 3 days for the ornaments to fully dry but check with the brand of your clay and how thick your ornaments are. To finish, place some string or ribbon through the holes in your ornaments and that's it!
Now that my birthday has come and gone, we can really start bringing Christmas into the apartment!