Best way to mail merge a document?

The best way to ask my question is to explain what I'm trying to do.
I am making a half sheet page for an orphan sponsorship program. Each sheet will need to have the child's name, age & grade and their picture. The pages will have a jpeg background which I exported from a photoshop file.
This is what I've tried to do...
I put each child's name into my address book and make a text box on the page and inserted the mail merge fields. I tried dragging a contact card to each text box but when I try to actually do the merge it has the same name on each box.
This is what I've been doing (which seems very inefficient...
I made the first page with the jpeg background and added a text box. I then keep duplicating the first page and manually type in each box the kids info and then drag the photo from my finder into the picture placeholder. It works this way but with 220 different kids (name info & picture) and having to do each one manually is taking forever.
It seems that there might be an easier/quicker way to do this...but I can't figure it out.
Any suggestions?

"I put each child's name into my address book"
Have you aslo put the child's information on the same card? Have you set each merge field to obtain the information from a different field on the Address Book card>
Have you defined the Paper Size to "Half letter" in Page Setup? (This may have to be done as a custom size, depending on your printer.)
Page Merge places information from a single card onto each "Page" (as defined in Page Setup). If a merge field is repeated on that "Page", that field will contain information from the same card.
To my understanding, merge will handle only text. You'll still have to transfer the photos manually.
Regards,
Barry

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