I am super excited to do this one with my daughter and husband. It's kind of like sending out Christmas letters, but could include a lot more. You could essentially use any program from Word, to Open Office, or an actual Newsletter construction program.
Here are a few suggestions (I have not tried them personally, so use discretion when you choose one)
Word (Click this link for instructions)
Word Draw (LINK)
Smile Templates (LINK)
And now here's the hard part. You may be like me and want to share your news with family and friends all the time, in newsletter form, because somehow, it makes you feel important. Well I'm going to put the kabash on that idea right away! Who has time to write newsletters constantly? May I suggest that you stick to Easter and Christmas? Or perhaps for each person's birthday? (This is an EXCELLENT way to start a family history book, btw). The choice is yours, but from personal experience, I would say to be careful not to take on too much. It's easier to start small, and do more newsletters later than to attempt a lot all at once. And now for the second hardest thing. Choosing what to include....
Choosing what to include will have a large bias depending on how many people you have in your family. If you and your husband have 5 kids, you might want to forgo drawings by the kids, whereas if you have one child, you will likely have space to include it. The choice is yours, but here are some ideas.
Recent pictures (any snapshot is fine)
Upcoming dates of importance (Dance Recitals, Graduation, Birthday Party, etc)
Current Address and Phone number (especially important if you recently moved like we did)
Family News (Graduations, births, etc)
Special successes (Aced a test, job promotion, etc)
New house (Or apartment, condo, garden, etc)
Family History/Genealogy story
Stories written by the kids
Pictures drawn by the kids
Family Vacation Summary (with pictures)
Favorites (Family Recipe, Game, Book, Activity, etc. You could also do this for birthday newsletters)
The options are limitless. And if you feel overwhelmed, just think what you would tell someone that you hadn't seen in years, and you were catching up over lunch. Start with that, and build from there.
Good luck with everything! Don't worry about it being perfect, especially in the beginning. My daughter's birthday is coming up, so I'm going to make a newsletter for her to send to family and close friends. What kind of newsletter would you try?