Loot bags are awesome because they'll be used instantly by everyone (give them at the beginning of the gift-giving and they can stash all their booty straight into their own personalized bag), can be reused year after year (store them in your Christmas stockings?), and can even double as attractive reusable gift wrap.
Each bag takes approximately a half yard of fabric, a little bit of string, and some colored thread.
Step 1: Project Materials
Half a yard of 45" wide fabric
Thread for sewing and for monogram
Small piece of contrasting fabric (about 4"x4") - contrasts with thread for monogram
Piece of cotton yarn, or other for drawstring