I love these cute art clips from Pottery Barn (they're $39):
Here's my version (sorry for the horrible lighting!):
I found the wooden star pegs at Michael's - I think they were around $1.50 each, but it's been awhile - anyway, they weren't much! They had tons of cute shapes to choose from - flowers, cars, butterflies, etc. I painted the stars red to match some other artwork we have in the playroom, distressed the edges, sprayed them with a clear sealer, and hung them on the wall. I strung some thick picture-hanging wire between the two stars - you could also use rope or twine - and used clothespins to hang the artwork. Voila! Another cute idea for displaying art for under $5. Don't you just love being able to duplicate something cute for much less?!