Cut cardboard tubes into varying lengths to produce gnomes of different heights. Cover them with construction paper.
Roll white construction paper into a cone and secure with glue or tape. Trim the open end straight.
Wrap yarn around your four fingers 10-12 times. Cut a piece of yarn about 6 inches long and thread it through the center of the looped yarn. Tie in a knot then cut the loops.
Trim the beard to make the strands a bit more even then glue it to the top of the cardboard tube. Glue it so that the yarn knot is resting above the top of the tube. This will make it easier to get the hat over it. Glue the hat over the beard and glue a pom pom to the top of the beard where it meets the hat.
Let everything dry completely. When dry, the final step is to carefully bend the hats a little to give them some character. You can skip this step and stick with straight caps if you like!