What you'll need:
-Scrap wood, cut in a size that fits the text that you want to use
-Glow in the dark paint
-Pre-cut paper letters (I bought these at Wal-Mart for $4 in the stationary section and have used them for a few different projects)
-Clear glue (or Modge Podge)
-Small piece of wire (or string)
-Two small finishing nails
Step 1: Wood Base
Step 2: Paint
Next, apply the glow in the dark paint. It goes on pretty streaky, and after doing a few of these I think I got the technique down pat. Apply the coats fairly heavy and make sure to allow the paint to dry fully before applying the next coat. Alternate your paint strokes for each coat (vertically for one coat, horizontally for the next) After each coat, go into a dark room to check how the layers look. It will probably take 3-5 coats (the more the better). If it's still kind of streaky after 5 coats, don't worry too much about it (once the paper letters and glue go on, it will cover/even out the streaks)
Step 3: Apply the Lettering
I find clear glue easier to use because it doesn't bubble paper like ModgePodge does. But all I had was ModgePodge so that's what I used. Simply modgepodge your lettering on and try your darndest to avoid bubbles. I applied two coats and let it dry.
Step 4: Hanging Hook
Step 5: You're Done!
I've made a few different pieces using this technique for Christmas presents. The "always kiss me good night" lettering didn't bubble like the kid's names because I used clear glue to secure the letters and used ModgePodge as the finishing coat.