An easy way to make confetti is to start with colored construction paper. Have the kids write words and draw pictures all over it. Older kids could cut out the words. Ask them to think of good words for new years eve. Some suggestions...party,celebrate,2009...you get the idea. Skip the paint. If you want to add glitter use simple Elmers Glue and sprinkle the glitter over it. Once it's dry then they can cut it into strips and pieces.
Show them confetti online to give them the idea
www.partyconfetti.com