You will need:
Full sheets of felt
Sequins, Rhinestones, and other bling :)
needle and thread/sewing machine
4 12" square sheets of woven fabric
First, give the kids the felt and glitter glues, and have them decorate the felt as they wish. Then, give them the bling to add on to spots of the glitter glue. Allow it to dry overnight.
A competent sewer should stack the 4 sheets of fabric and sew the edges of 3/4 sides together. You can either use an interlock machine or just a zigzag stitch to prevent the fabric from fraying. Turn the bag inside out so that the seams are inside. If you'd like, and for a polished look, you can iron the seams flat.
Back at school, have the kids spread the fabric/tacky glue around the underside of the felt sheet and then press firmly onto the bag. Allow up to 24 hours to dry.
Happy Matzah Munching!