Shrink plastic, die cut machine and die, colored pencils, markers, or paint, and glue dots.
To begin, select a die that has a large, fairly simple design. To help in selecting your design, it may be good to know that a 2 1/2 inch circle will shrink down to about a 1 inch circle. For this example, I used a the Large Balloon die from Sizzix. Place the shrink plastic sheet in the die cut machine just as you would a piece of cardstock or paper.
For ideas for using shrink plastic embellishments on your scrapbook pages visit the Shrink Plastic Layout Gallery.