I just bought 100 yards of medium weight fleece for my Girl Guides (substitute Girl Scouts if you are American) for $2.99 a yard from fabric.com. That will let us have the girls make personalized camp blankets for less than $10/girl.
I plan on using my alphabet dies with my AccuQuilt Studio so they can each applique their name on their blanket, and my heart die so they can easily make a trefoil to applique, both in a contrasting colour.
I'm checking out connecting threads now. I've got 10 minutes before I have to leave for an appointment.