I have been on a big felt kick lately. I think it's because felt is so easy to work with. It doesn't fray, so you can just cut a button hole and not have to machine stitch one. It seems like we all have an aversion to button hole making. I have never been very good at it. Felt is also very forgiving.I am showing a sampling of the gift card/ipod/cellphone holders I have made. I have several more listed on etsy.
They are so easy to make. You just cut two squares or rectangles, blanket stitch three sides together and then do a blanket stitch along the top of each piece separately for a finished look. Cut a little slit for a button hole and sew a button on the inside of the back piece at the same spot as your button hole so that the button goes through the hole to the front. I love to incorporate the button as part of the design. For example, I made one with a cupcake and the red button is the cherry on the cupcake. I made one that is an apple tree and two of the red apples are the buttons.
That is the basic holder. If you want to applique, sew your design onto one of the felt pieces before you blanket stitch the two together. After I figure out how to post a video, I will provide a video tutorial on the blanket stitch and a couple of my fun appliques.