The Orla Owl bag is a great fun item to knit and felt.  The resulting bag is hardwearing and practical.  It is sized to fit a child, and is easily adapted to have longer straps for a larger child / adult.  You could also make it as a shoulder bag, or with a short carry handle.
 
Orla Owl is felted in your washing machine, an amazing and simple transformation process, which yields remarkably great results each time.
 
All The Yarn Genie patterns are highly detailed with in-depth descriptions of techniques and processes, enabling even novice knitters to create something amazing. This felted bag is remarkably simple and the pattern walks you through the process carefully.
 
The bag is knitted in chunky felting yarn.  I used DROPS Snow yarn on 8mm needles.  You will need about 260g (260m) of yarn, 200g in the main brown colour, plus 35g of light brown, around 25g of white, and scraps of black.  
 
The pattern contains detailed instructions for all knitting and felting techniques used, you need only to know how to cast on, knit, purl and cast off.