I am with you. ALL of my family/friend quilt gifts are from recycled fabric. I also do the sheet backing and sometimes use the quilt for the center... Also on a strict budget...
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Originally Posted by PaperPrincess
Ask friends for old shirts. 100% cotton if possible. YOu can use an old sheet for backing, and a flannel sheet or thin used blanket for batting. If you don't have a machine, you can hand piece & hand quilt or just tie. This site has a lot of free quilt patterns made from scraps:
http://www.quiltville.com/