So this activity has truly been a great teaching aid when it comes to matching upper case to lower case letters. And the added advantage of having the uppercase on pegs meant that it would even work on the little ones fine motor skills (pincer grasp much needed to strengthen those tiny hand muscles)
I made these using:
Foam sheets in 5 colours
Cut out some bigger shapes for the lower case letters and small tiny square to stick onto the pegs in the corresponding colors. Mark them using your sharpie and your set to go.
Prep time: 30minutes
In younger kids who are at the beginning of their letter learnig experience i suggest starting of with just a few letters and adding in a few more each time.