This is one of my favorites- it's a pencil roll! It's great for seminary kids (scripture markers), kids on trips, and even engineering students (my brother insists he's going to be the envy of all his college buddies!) I made a tall one, with 1/4 inch pockets, for a friend who knits- now she can carry all her knitting supplies in one place!
Basically, cut two pieces of fabric to the size you want, and sew right sides together with two ribbons INSIDE (only short tails will be visible for now.) Clip corners, turn (look! Now your ribbons are on the outside!), press bottom half up, and sew close to the edge to make the whole thing a little stiffer and close up your hole. I made my pocket seams about 1/2 inch apart, for small colored pencils, but you could leave a big pocket for an eraser, or anything you like. I've seen these used for silverware, makeup brushes, and anything else you can imagine!
Oh, and this is my favorite fabric right now. It was originally a crib sheet at a discount store- so far it's become Ernie' FAVORITE pillow, and 8 of these pencil rolls. Pretty good for $3 worth of fabric, right? For any thrifty shoppers out there, I'm telling you- check out sheets for massive amounts for fabric for just a few dollars!