Not only is this activity great fine motor and counting practice, it's a sure winnner with my pre-schooler. How do I know? She came up with it! Try it with your preschooler, and see if he doesn't like it just as much!
"Look Mommy! It's a counting activity for me. You just take a piece of paper and cut slits in it. Then you count them." She was so proud.
So am I.