I had fun making this little bag for Christmas. I did this one by putting iron-on adhesive between two rectangles of fabric, wrong sides facing each other. The stiffness of the adhesive actually made the bag shape up pretty well. I don't know how it will hold up to a washing, but since this is for a small child that will likely lose it at an Ikea I'm not going to lose sleep over it.
Then I sewed up the sides pillowcase style. Turned it right side out. Then rolled the top towards the inside of the bag, pressed and sewed. My sewing was kind of crooked so I hand stitched a little band over the top.
Of course as soon I was done I found this totally easy dishtowel bag tutorial. But that's what always happens to me. I think I can "wing it" and end up making too much work for myself. It's called crafting with ADD. I read the first two lines of the pattern or recipe and then freeball the rest of it. So this my freeball'n bag. Enjoy!