I would suggest you make at least two copies of the templates. One to cut out the outside border of shield (white), and one for the inner shield (green). The letters can be cut out of either pattern.
You can either Wonderunder it and zigzag around it onto the background block, OR, the old fashion way, cut it out with seam allowances added and turn it under and hand stitch it to the background block.
Lets put this to good use and teach those girls how to quilt!!!