I found two matching squares and some plastic rings that had been crochet over and thought, hey, these could be a child's purse. I sewed the two sides together, leaving the top open. I sewed the rings as handles to the inside of the purse (so not to hide the design of the square) but you could attach them to the outside if you'd like.
Enjoy and get creative!
Materials:
yarn
hook needed for yarn you choose
instructions on how to make a square (try a new one or an old favorite)
Instructions:
Make two squares
Sew squares together leaving an opening
Attach handles
Here is a link to a bunch of free squares. I'm sure you could also check out Raverly for more patterns.
Squares Link