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If you’ve got a stash of leftover felt and a free afternoon, you already have most of what you need to make one of the most useful preschool learning toys around. This felt scrap alphabet and drawstring bag project turns scraps into a portable, hands-on alphabet set your child will reach for again and again.

Quick Overview: What This Felt Scrap Alphabet & Bag Project Is

This is a simple DIY project: 26 felt letters stored inside a drawstring bag for everyday use with preschoolers. Felt scraps can be used to create colorful alphabet designs in whatever palette you like, and the drawstring bag serves as both storage and an educational toy in one tidy package. The whole thing is ideal for kids aged 3 to 5, though older siblings will enjoy it too.

The finished set includes 26 uppercase letters, with the option to add extras like duplicate vowels, punctuation marks, or basic shapes. You can store everything in a white drawstring bag you sew yourself or grab a plain one from any craft store. Think of it as your own version of custom drawstring bags-handmade, personal, and designed around your child’s learning needs, similar to how parents use drawstring backpacks to carry school supplies.

Kids benefit from creative, hands-on activities using everyday materials, and this project checks every box. It’s budget-friendly, upcycled, and perfect for ages 3–6 for learning the alphabet, spelling simple words, and color matching. Here at Little Button Diaries, we’re a family craft and preschool-learning blog-not a shop-so this is a project you can make over a weekend with materials you likely already own.

The image features colorful handmade felt letters in various bright colors scattered across a wooden table, accompanied by a small white fabric drawstring bag. This playful arrangement creates a fun way to learn colors and combine letters, making it an ideal learning toy for children.

Supplies You’ll Need (Using Felt Scraps and a Simple Drawstring Bag)

Most items on this list are inexpensive and easy to find at US craft stores like Joann or Michaels, or you can add them to your online cart for delivery. Here’s what to gather:

  • Felt scraps: Wool-blend or thick acrylic felt (1.6–3.2 mm thick). Thicker felt makes more durable letters that hold up under little hands.
  • White felt for contrast pieces or vowel letters
  • Embroidery thread/floss: Cotton or poly-cotton in contrasting colors
  • Fabric scissors: Small, sharp pair for precision cuts
  • Air-erasable marking pen for tracing
  • Safety pins for threading drawstring cord
  • Cotton cord or ribbon: 4–6 mm thickness for the drawstring
  • Plain cotton or canvas fabric to sew the bag (or a ready-made white drawstring bag)
  • Card stock for making reusable letter templates

Each felt letter should measure about 2–3 inches tall. The finished bag works well at approximately 12″ x 15″ for home use, or scale up to 14″ x 16″ if you want something closer to mini custom drawstring backpacks that kids can carry. Most drawstring bags you’ll find commercially are made from polypropylene or polyester, but for a handmade version, mid-weight cotton or canvas gives a nicer feel.

Optional extras include iron-on fusible web for crisper letters, fabric paint for adding full color details, and small beads or buttons-though avoid these entirely for children under 3 due to choking risks. Make sure all materials are child-safe, washable, and suitable for everyday use.

Planning Your Felt Alphabet Set

Before you cut into your felt scraps, spend a few minutes deciding on the look and learning goals for the set. Using small felt scraps allows for colorful patchwork design in crafts, so this is where your scrap stash really shines.

Choosing a color scheme:

  • Rainbow: Each letter a different color-great for helping younger kids learn colors alongside letters
  • Two-tone: Vowels in one color (say, gold or red), consonants in another-this reinforces phonological categories
  • Monochrome or pastels: Calmer look, less overstimulation, works well for sensory art activities for special needs

Letter style: Stick with block capitals in a simple sans-serif shape similar to school print (think Arial). Avoid script or overly stylized fonts-legibility matters more than aesthetics for early learners.

Planning extras: Duplicate common letters like A, E, S, and T so children can spell more words without running out. Start with 26 and add duplicates later based on what your child needs.

Trace each letter onto thin card stock to create durable templates you can reuse. These are excellent for sharing with preschool classrooms or friends who want to make their own set-an approach that aligns well with reuse arts and crafts principles.

Step-by-Step: Cutting and Sewing the Felt Scrap Alphabet

This section walks you through making sturdy, child-safe letters from scrap felt. The process is straightforward: trace, cut, stitch. Felt appliqué techniques are effective for crafting alphabet designs because felt doesn’t fray when cut, which means clean edges every time.

A close-up view shows hands carefully using small sharp scissors to cut out a bright green felt letter shape on a cutting mat, demonstrating a fun and creative way to create words and mini letters for personalized drawstring bags or learning toys. The vibrant color and precise cutting highlight the crafting process involved in making custom items.

Tracing and cutting:

  1. Place your card stock template on the wrong side of the felt and trace with an air-erasable pen.
  2. Cut with sharp, small scissors. For rounded letters like O, C, and S, take slow curved cuts to avoid jagged edges.
  3. Keep the nap or texture running the same direction across all letters for a consistent look.

Single vs. double layer:

Approach

Best For

Pros

Single layer

Quick projects, flat play on felt boards

Lighter, faster to make

Double layer

Frequent handling, travel sets

Thicker, more durable, hides thread tails

Stitching methods:

Use contrasting thread to secure the felt letters-it adds a playful look and makes the stitching part of the design. A blanket stitch around edges is great for durable stitching that also looks decorative. Running stitch or backstitch works for faster assembly.

You can add simple embroidered faces or dot patterns to a few letters (think googly eyes on the letter “O”), but keep embellishments minimal so letters remain legible. If your children are under 3, skip beads and buttons entirely, and secure all thread tails firmly so there are no loose pieces to pull free. For more on turning a photo into an appliqué, check out our beginner guide.

Making a Simple Drawstring Bag for Your Alphabet

You can either sew a bag from stash fabric or personalize a ready-made white drawstring bag-either route works. Felt bags can be sewn by hand or machine, depending on your comfort level and what equipment you have.

Basic sewing steps:

  1. Cut two matching rectangles from felt or cotton fabric-approximately 13″ x 15″ each (or one large rectangle at 26″ x 15″, folded in half).
  2. Sew the side seams and bottom seam with a ½” seam allowance. If you want something closer to cinch bags with straps, leave small openings at the bottom corners for cord to loop through.
  3. Create a casing for the drawstring by folding down the top edge of the bag about 1 inch and stitching it in place, leaving an opening to feed the cord through.
  4. Attach a safety pin to thread the drawstring through the casing. Knot both ends so the cord won’t slip back inside.

For reference, commercial drawstring bags like the Alphapals set feature a drawstring bag that measures approximately 17″ x 17″-feel free to scale up if your child will carry it as a backpack. Adding a lining strengthens thinner cotton and prevents felt letters from poking through, making the bag more like the durable drawstring backpacks kids can tote around. A small hanging loop stitched at the top center lets you store the bag on a hook for convenient organization in a playroom or classroom.

The image features a colorful collection of felt scrap alphabet letters arranged alongside a white drawstring bag, which is perfect for organizing and storing the letters. This fun learning toy encourages creativity by allowing users to combine letters and create words, making it an excellent choice for everyday use, school activities, or corporate events.

Personalizing Your Drawstring Bag: Names, Colors & Full-Color Designs

Just like custom drawstring bags you’d order online, this DIY version can be fully personalized. Sew felt letters onto the front panel of the bag to spell your child’s name, or add a small felt logo or emblem that represents something they love.

Simple customization ideas:

  • Felt appliqué name: Cut your child’s initials from contrasting felt and stitch them front and center
  • Fabric paint doodles: Use water-based fabric paint to add full color images-rainbows, stars, animals, or scattered ABCs
  • Patchwork panel: Use leftover scraps to create shapes like hearts, stars, or clouds and stitch them onto the bag for a unique printed-look design
  • Color themes: Try seasonal palettes, or even camo patterns for kids who prefer that style

If multiple siblings each need a set, color-code the personalized drawstring bags so everyone knows which is theirs. Older kids can help design the front panel with their own input, turning this into a shared creative project from our cute easy crafts collection.

Learning Through Play: Games to Use with the Felt Alphabet & Bag

Alphabet designs can enhance preschool learning activities far more than flashcards because children can touch, sort, and manipulate the letters. Research shows that even short daily sessions-about 10 minutes a day, four days a week-produce measurable growth in letter name and sound knowledge.

Simple games to try:

  • Lucky Dip Letters: Pull a letter from the bag, name it, say its sound, and think of a word starting with it. This is a fun way to make any child feel letter happy about reading.
  • Name Hunt: Find letters to spell your name on the floor or table.
  • Color Match: Match letters to colored paper or blocks-perfect for younger toddlers who are still learning to learn colors.
  • Word Builder: Combine letters to create words. Start with CVC words like “cat,” “dog,” and “sun.” Combining letters into real words is where the magic happens.

For ages 2–3, focus on letter recognition and color sorting. For ages 4–6, building sight words and short family names is excellent practice. Studies tracking 518 preschoolers found that early alphabet knowledge directly correlates with Grade 1 reading and spelling outcomes.

Try using the felt letters alongside storybooks-pull out the first letter of a character’s name as you read together. The portability is a huge bonus: kids can take the bag in the car, to grandparents, or to restaurants, just like compact drawstring backpacks used for travel toys. Pair it with group activities for 5 year olds for even more engagement.

For comparison, commercial sets like the Alphapals Mini Letters set includes 26 plush letters, with each plush letter measuring approximately 4″ x 3″ x 1″-cuddly and great as a learning toy, but your handmade version costs a fraction of the prices and can be customized however you like. Those mini letters are suitable for children aged 3 to 5 years.

A young child is sitting on a colorful rug, joyfully pulling bright felt letters from a white drawstring bag, which serves as a fun learning toy for creating words and combining letters. The vibrant scene captures the excitement of learning colors and letters through play.

Storage, Care, and Safety Tips

Proper storage keeps the set ready for quick play and makes it last longer. The drawstring bag keeps the whole set together-encourage children to “post” letters back into the bag at the end of play for worry free cleanup and better organization.

Washing guidance:

Item

Method

Drying

Felt letters

Handwash or gentle cycle in a mesh bag; machine wash cold separately from other laundry

Air dry flat to retain shape

Cotton/polyester bag

Machine wash; use only non chlorine bleach if needed; non chlorine bleach is gentler on dyed fabric

Tumble dry low or air dry

Plush alphabet toys are machine washable for easy cleaning, and the same applies to your handmade set if you use quality materials. Avoid high heat-tumble on low or skip the dryer entirely for wool-blend felt. We recommend checking seams and thread tails regularly and trimming anything that comes loose.

Safety notes: Avoid beads, buttons, or small embellishments for children under 3. Supervise young children who still mouth items. Label the bag with your child’s name if they’ll take it to school, just as you would with any school drawstring bags or backpacks.

The image features a colorful collection of felt scrap alphabet letters arranged alongside a white drawstring bag, which is perfect for organizing and storing the letters. This fun learning toy encourages creativity by allowing users to combine letters and create words, making it an excellent choice for everyday use, school activities, or corporate events.

Variations: From Mini Travel Sets to Classroom-Size Kits

The basic project scales easily for different families and settings-think of these as DIY activities you can adapt endlessly.

Mini travel version: Cut smaller letters (about 1.5 inches tall) and use a compact drawstring bag that fits into a parent’s handbag. These mini letters are perfect for on-the-go entertainment at restaurants or waiting rooms.

Classroom kit: Preschool teachers can make multiple sets-one color per group of children-stored in larger custom drawstring bags. If you need bags in bulk for a school event, fundraisers, or giveaways, custom drawstring bags can be ordered in bulk quantities with prices for custom drawstring bags starting under $2 each. A minimum order of 25 custom drawstring bags is typically required, and they’re popular for promotional giveaways at trade shows, corporate events, and school functions. Many customers use them to reach future clients by adding a brand name or logo, though for classroom use a simple design works just fine.

Theme ideas:

  • Seasonal color palettes (autumn tones, spring pastels, or adjustable sets you swap throughout the year)
  • Felt numbers and simple shapes added to the set for early math games-check our number 9 craft activity for inspiration
  • Expansion packs stored in a gym bag or larger backpack with pockets for sorting

Browse reviews of similar projects online or watch videos from other craft parents for fresh ideas. We’d love to see your finished sets-share photos and tag Little Button Diaries on our page so the whole community can enjoy your creations.

This felt scrap alphabet and drawstring bag is proof that the best learning toys don’t need a hefty price tag. Grab your scraps, fill a bag, and watch your little one discover the alphabet one letter at a time.

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