Here's another idea I found at Eighteen25. I altered mine a bit - I didn't have glitter and didn't have it in the budget to get glitter and wood letters at the time, so I got the glitter craft foam in the kids craft isle at JoAnns. It was only 1.49 a sheet and I used a coupon, so it was less than a dollar, and I already had the paper and frames at home.
I just cut out the letters with my cricut on regular paper and traced them onto the craft foam to cut out. Then I just glued them to the glass of the frame. A super easy project.