I'm still in the planning mode for my son's first birthday ... here is a sample of what I may use for the loot bag. It's a little small for my liking but I think it will work. This would be the perfect size for gift cards or for Christmas - it will hold a small handmade card just perfectly!
I used my Cricut cartridge Plantain Schoolbook and used the basket die cut at 7 1/4 inches. Martha Stewart helped me out with the fringed edge. Some Tim Holtz distress ink in Broken China. Finally some letters cut at 1 1/2 inches for the "LOOT"
Quick and easy ... the way I like it!