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I don't know about the kids in your day care, but mine have favorite stories. The Mitten is a favorite and Miss Spider's Tea Party, or Old MacDonald. Telling the story with a flannel storyboard is a hit too. Here is how I made my storyboard. I have a blackboard for the wall and have put it up with hooks so it is easily turned around when I wish to use the flannel storyboard. I have set up on the back of my blackboard a sheet of flannel (mine is solid green) the same size of the blackboard. Once I adhered it to the back of the blackboard with spray adhesive we are all set to make the characters from the kids favorite stories.
One way to do this is to use tracing paper to create patterns of the figures from the book that you choose to make. Then cut them from flannel and draw or paint the faces, clothes, etc. on the front of the flannel piece.
Because these flannel pieces are somewhat abstract (and I'm not a great artist!) I have found that photocopying pictures from the book, (or scanning and printing them) works really well. They are more immediately recognizable to the children and I only have to glue a shape of flannel to the back to get it to stay on the flannel board. I also know a childcare provider who scans her pictures from the books and prints them onto transfer pages, she then transfers the pictures to an old cotton sheet or piece of muslin. Although a bit more expensive they are very durable and recognizable. I store my flannel pieces in a large envelope and glue it to the inside back cover of the book it relates to, but, I have seen them stored in an accordion file under the title of the book too.