Print out the template of choice.
Colour the pieces as appropriate and cut them out. (cutting may require adult assistance and can be pre-done).
See the picture above for how the puppet should look when complete.

GET FAMILIAR WITH YOUR PAPER BAG:

I'm going to walk through this slowly. Look at your paper bag.
It should be closed and flat like a piece of paper. Just like when they are brand new.
On one side, it's all smooth. This will be the BACK of your puppet
- It's important that all the kids get the back and front straight at the beginning!
On the other side there's a flippy tab (which is typically the bottom of the bag when you're carrying your lunch around...)
- This flippy tab will be the HEAD
Lift the flippy tab up a bit. Underneath of the tab will be the mouth,
- When the child put's her hand in the bag, she'll be able to make the puppet talk.
Look at the rest of the front of the bag. (The 3/4 or so of the bag below the part with the flippy tab) This will be the BODY.
Look at the sides of the bag. There should be a FLAP of paper.
- We'll be slipping the arms into this flap, though it isn't a big deal if they glue them right to the front of the body.

OK, now that we're comfy with our bags, let's craft!

PUTTING IT TOGETHER:

Print the template of choice and color in the pieces, as necessary. If desired, take a piece of pink construction paper and cut it out to be the size of the body and glue it onto the paper bag. Cut another piece the size of the head and glue it onto the bag. You can also cut a third piece the size of the back and glue it onto the bag. Alternatively, you can paint your whole bag pink
Lift the flap and glue the mouth on underneath it. Glue the eyes, snout, ears and moustache (if you want one) onto the head. You could put a cotton ball under the snout to make it stand out a bit from the head.
Lift the side tab and put on a spot of glue. Attach the arm (or just put the arm on the front of the bag). Do the same with the other arm.
Glue the bow onto the head (girl) or on the body (boy). Make the eyelashes. There are instructions on the template for how to do this. Basically, just cut down the dotted lines. Use a pencil to curl them a bit and fold the tab to make it easier to glue the lashes to the pig. You can colour the back side with a black marker before you start cutting, if you like.
Cut the tail out in a spiral (follow the template dotted lines). Turn the bag over and glue the center of the spiral to the bag. Glue the memory verse onto the tummy or in one of the hands.
You can decorate your pig further if you like. Some ideas are sparkles/sparkle glue, bits of lace or ribbon, buttons glued down the front, or older kids might like to "dress up" their pig with clothes they draw/cut out of construction paper (overalls and a top hat for the boy, a dress and fancy shoes for a girl). There's lots of room to expand on this template to allow for more creativity as part of the project.