The pool we go to is at least a mile away and since we don't own a car we either walk or take the bus there. This makes it hard to pack a lot of items so I thought that is would be nice to make my daughter a cover-up that doubles as a towel. I am making one for a 3 year old, but you could adjust the measurements to your child.
1 yd terry cloth
Cut a two pieces of cloth that are 15 inches x 15 inches. With right sides together, sew up the sides with a 1/4 inch seam allowance. Finish off the top edge with either a serger or the overlock stitch/zigzag on your machine. (This will be visable)
Handwind your elastic thread onto your bobbin and your regular thread onto the top of your machine. Set stitch length to longest (basting stitch). Starting at one side seam and 1 inch below top, backstitch and then stitch around the whole circle ending where you started and backstitch again. Move down the width of the presserfoot and repeat until you have made about 5 inches of elastic stitching.
Cut two pieces of fabric that are 6 inches tall by 22 inches wide. With right sides together sew the side seams with 1/4 inch seam allowance. Sew up bottom edge with a 1 inch hem. Sew a gathering stitch at the top edge. Gather. Pin the gathered edge, right sides together, to the bottom of the main section.
Cut two pieces of fabric - 1 1/2 inches wide by 18 inches long. Fold in half and sew at 1/4 inch. Turn right side out. Finish one end with ziz zag. Pin unfinished end to wrong side of the upper edge of the dress about 3 inched in towards front of the dress.