First I got a package of 24 scrapbook Christmas papers from Wal-Mart for $4.97 and a glue stick.
Fold and tear in half. You will have pieces measuring 12"X6"
I lined up a 12.5"X12.5" Omnigrid ruler with the 11.5" line even with the bottom edge and folded up 1/2" on both ends.
I made a template 2" in from the edge and down a bit on a piece of paper, and used it to punch holes with a hole punch through the top and bottom folded edge.
You will have a little 1" square on the middle outside edge. Cut it just to the 1" fold so you can flip and glue it up. Put your glue on the right side of the 1" piece so it folds under the long edge.
The 1" piece was glued with a glue stick and the side folded over it to make a nice square bottom. Flip over and do the other side. Glue the remaining 1" long flap over the just glued piece to make a box. Repeat with other side.
Lay down the bag and glue just inside the top flap between the holes and fold to the inside.
Thread a 16" piece of ribbon through the holes, tie in a knot and pull to the inside. Congratulations, you just made a cute little gift bag. These took me 8 minutes to make including taking the pictures. You'll get 48 bags for about 11 cents each, not including the ribbon, but I had some on hand so didn't factor that in. Have fun.
This is my first tutorial, if you have any problems just ask.