Both these activities are great fun and she learns lots from doing them. I often let her combine these two loves and punch her own creations.
The by product of all this hole punching art work is lots of beautifully rainbow coloured shapes (or what ever colour she has been using to paint or print that day!) When arranged these make striking and unique designs (a bit like the originals!). Perfect for cards and a great way to preserve art work.
Depending on how the paper is painted it helps to get a range of colours if you cut the paper into smaller strips (other wise the hole punch can only reach the outside edge).
You can use any design you like but I really like using geometric style patterns (like a square or a line of three) in similar shades or a rainbow shape using rainbow colours. The are perfect for grandparents.