I made this poncho for my daughter over a year ago and she still loves to wear it. She can also wear it as a skirt if she really wants to. It's adorable and doesn't take too long to make.
I also made matching fingerless gloves to match. Between the two projects I used less than one skein of yarn. I used Loops & Threads Impeccable worsted weight yarn. It's a pretty soft yarn to begin with but once it's washed, it's super soft.