Hi Meandmine! I've been searching for a source for the initials for a wedding cake topper without a great deal of success.
I looked at the wooden ones at Walmart last week, and didn't buy them because they seem too thick to me (at least 1/2") and they aren't very tall, so seemed a little chunky, but for a child's cake they might be fine. I think they were only about a dollar each.
Walmart will also have a good selection of beads and stones to decorate it with, but I'd recommend buying a good clear glue to put them on with, hot glue is good for a lot of things, but I don't think it willhold the stones/sequins, etc. on these initials very well, particularly not with children handling them.
In the meantime, I am still looking for reasonably priced lucite or lightweight metal initials that we can glue swarovski crystals on! Janice