I’ve seen this idea now on Pinterest, in a magazine, and in a newspaper in various forms, but the basic concept is the same.
Take a plastic ornament and remove the metal hanger. Hot glue the end of a piece of yarn and wrap the yarn around the ornament until it’s completely covered. You may need to spot glue in some place so that yarn stays put on the smooth surface and keeps it from completely unraveling if you drop it. Then glue the other end in once covered.
Replace the metal hanger.
Depending on the size of the ball use toothpicks or wooden meat skewers to make knitting needles. Just hot glue a bead on the ends of the sticks (if using skewers you’ll want to trim the length.)
Stick the “needles” in the “ball of yarn” and add a ribbon to hang.