GREAT QUESTION!!! OK.... Here is what I was told at the ripe old age of 18 when I went to work at a fabric store. I was talking with the Manager of the store who was cutting my fabric. I referred to the fabric as 'material'. She told me, that 'Materials are used to build houses, Fabrics are what you sew with'. Please don't let me hear you refer to fabric as materials again"!! She said it in a very kindly way with a smile so I didn't feel reprimanded.. but I knew she meant business! lol I have never again called it 'material'. I ended up getting asked to work at this 'FABRIC' store the very same day!!
So to me.... it's FABRIC!! giggle