Last year for Christmas we were really struggling. I love to send out Christmas cards and send pictures and write a letter, but didn't have the money to do it. So I put pictures into our Christmas Letter and put a cute border around it and I had my Christmas letter with pictures. I just picked a few pictures of the family from the past few months and from a few significant events from that year. I probably went a little overboard with the pictures, but I LOVE pictures! I just made the word document into three columns and placed the pictures in and sized them. Before I put them into the document, I copied the photos I wanted to use, cropped them and saved them to a different folder to make them easier to find. (Sorry, I can't remember exactly how to get the pictures in the the document. I have to play with it. But I think you go to "insert" and do it from there). I was in love with this letter. And I'm sure it was fun for people to receive and see all those different pictures of the kids.
(Of couse, this is if you are not able to take advantage of the free photo cards deal)