EACH FRONT AND BACK PIECE:

On the wrong side, press 1/2-inch hem along two parallel side seams.
 

Measure and mark 3 inches from the top.  Fold top to meet this mark; pin and press in place.

Stitch two parallel seams to create the drawstring casing: one seam 1/4-inch and one seam 3/4 inch from the raw edge. Be sure to backstitch at each end.
 

ASSEMBLE BAG:

Place front and back pieces right sides together, so that the top (folded) edge are on the same side. Pin the bottom raw edges together and sew a 1/2-inch seam across the bottom. Press to one side.

Turn the bag right side out. Fold it in half and pin the side seams together.

Begin at the top edge and sew down 3/4-inch, (until you reach the drawstring casing) a scant 1/4-inch in from the side seam. Backstitch and, lifting the needle and presser foot, slide the bag forward 1/2-inch. Once you are safely beyond the drawstring casing, lower the needle and presser foot and continue edge stitching around the bag. Repeat when you reach the same place on the other side. Be sure to backstitch at each end.

MAKE DRAWSTRINGS:

You can make a bias-tape drawstring, an i-cord, a twisted cord, or use ribbon for your bags. We think it's fun to mix it up and make each one a little different.

We made bias tape drawstrings by cutting 1-inch strips 22 inches in length. Using the bias tape maker, fold each long edge of the strip toward the center; press in place.

Then fold the strip in half lengthwise and press. Stitch in place.