My little girl loves purses. If I bought her a purse every time she said, "That's cute!" I'd go broke. Instead, I taught her how to make her own bag, and now she happily walks around with her own handmade purse.
How We Did It
First cut your felt as shown. Your child can do this, but for this particular project I cut it out for my daughter. The smallest piece is extra and can be used for another project later. (Like a monster felt board!)
Now line up your smaller piece on top of your bigger piece. (It doesn't matter if it's perfect, because felt is very forgiving. That's why I like using felt for crafting with young kids.)
Slowly sew your way around the bag. We found it worked best to start at the top corner and work our way around, but you could also sew the sides in whatever order you want.
You can sew the bag with a whip stitch, where the thread goes around the edge of the bag, or with a running stitch where the needle goes up and down. As you can see, our project switched back and forth between the two kinds of stitches.
After you have sewn three of the sides together, carefully cut a buttonhole in the flap at the top.
Finally, measure a ribbon for the length of your purse. Sew the ribbon onto the back on both sides.
And lest you think these are just for girls, my son made one that is currently housing his slipper........