All you need is scissors and two bandanas to make this bag.

Cut off 1” border in one piece setting aside for making the handle.  Lay bandanas out, wrong sides together, lining up edges.  Using fabric shears, cut a slit every 3/4” cutting up to the most inner printed square on the bandana.  You will be cutting out the corners and discarding these small squares. 

Beginning at one of the corners, take one of the fringes from the top and one from the bottom and tie them together in a double knot.  Tie one on each corner.  Continue tying all around except for the top.  This will be left open. 
To make the handle, cut each long scrap into two equal pieces.  Discard one piece and braid the other 3 together, knotting at each end.  Knot an end to each side of bag.