I'm not sure what everything is called for the supplies that I used. Hopefully you can figure that out by the picture below, of which I found all at my local, neighborhood craft store (Ben Franklin).
Btw, the circle has an 8" diameter.
I basically traced the outside of the circle and gave it about a cm allowance. Then I cut it and inserted it into the circle thing... (lol).
Then I took the tapestry needle and dmc thread to stitch some letters on it. Attach some earrings, and voila you're done.