Scrunchies are easy to make.  There are a few different methods you
can use depending on the fabric and desired finish.  Generally the 
fabric is 4" (10cm)  wide and between 16" (41cm) and 20" (51cm) long.  
These measurements are only a guideline.  For a child, the scrunchy 
could be cut smaller and narrower.  A wider and longer cut of fabric 
will result in a fuller scrunchy.  Try lots of different sizes and 
see what you end up with!

Method One.

Cut fabric 4" (10cm) by 20" (51cm) (This measurement is being used
for example purposes - scrunchies can be made in various widths and
lengths).  Fold the fabric in half lengthwise, right sides together.  
Sew this seam together, leaving the narrow edge of the fabric (the 
top and bottom) open.   Turn the fabric to the right side.  Insert 
elastic through the tube, holding one end as you thread the other.  
The length of elastic you use can vary depending on the thickness of 
the hair.  Lengths are generally between 5" (13cm) to 10" (51cm).  
The average is 6" (15cm) to 8" (20").  Secure the elastic by tying the 
ends in a knots or by stitching through the ends.   Place one tube 
over the other, turning under a small hem.  Hand stitch fabric ends 
together.

Method Two

Cut a piece of fabric 4" (10cm) x 20" (51cm).  Fold the fabric in
half lengthwise, right sides together.  Stitch together leaving a 2"
(5cm) opening in the center of the seam.  Turn tube to the right side. 
Stitch the open ends together to form a circle.  Thread the elastic 
through the opening in the tube, securing the ends of the elastic.  
Slip-stitch the open seam.

Method Three

This is one of two methods for making scrunchies that uses rubber
bands.   Cut fabric 4" (10cm) x 20" (51cm).  Sew short ends together 
making a circle.   Now take a rubber band and place this inside the 
fabric.  Sew the fabric together with the rubber band sandwiched 
between the two layers of fabric.   This seam is going to be the 
exposed finished edge of your scrunchy.   Using a serger is great for 
this method, try a woolly nylon, experiment with stitch length and 
thread.

Method Four

This method also uses a rubber band and allows you to turn the fabric
so your seams are on the side.  Cut a length of fabric 4" (10cm) x 20"
(51cm) and sandwich the fabric around the rubber band.  Stitch the
lengthwise seam together, right sides together.  Be careful not to 
catch the rubber band when sewing.  Next with the fabric attached 
around the rubber band, turn the fabric on itself.  The right side 
is now exposed and the seams are on the inside.  Turn under raw edge 
of short ends, tuck one inside the tube and slip-stitch in place.

These are only a few ideas for making great scrunchies.  If
you do not have a piece of fabric to fold over, use two pieces.  Try
woolly nylon, rolled hems, decorative thread that will coordinate or
contrast.   Fun and easy to make - before you know it, a great gift 
for any girl!