Also, I just learned how to make a photoshop collages and don't want to have to relearn next year so here's the play-by-play:
File--> New--> blank--> US paper. This gets the template.
Next, open the file you want to collage with. Drag little image icon from BIN. Drop it onto blank.
To resize and position your images. go to top bar, Image--> Transform -->Free Transform
tracer box will show up around image. Drag the vertices at sides and/or corners.
To overlap just the way you want, move position of images in Layers tray.
Add Font. (Milk and Cereal 110pt. in Red)
Merge Layers. Save.