Mark the wood in approximately 1.25" lengths with a pencil. Cut until you have 64 pieces.
Sand off any rough edges using the sandpaper.
Download and print off the letters on laserjet (see Notes).
Cut out the letters with the scissors.
Apply a generous coat of Mod Podge and stick the letter onto the front of each wood block. Cover the edges and wrap the excess over. Let dry for 15 - 20 minutes and then give them another coat.
Cut a piece of adhesive magnet and stick it to the back of the block.
Paint the sides with acrylic paint. Let dry completely before using.
Notes
If you don't have a laserjet printer, seal both sides of your inkjet pages with either hairspray or clear acrylic sealer so that the Mod Podge doesn't bleed. Spray, let dry, and spray the other side. Let dry before Mod Podging.