2. Pin the striped ribbon along the side and bottom edges of the design about 1 inch beyond the Aida-cloth insert, mitering the ribbon at the corners. Sew the ribbon in place. For the handles, cut two 18 inch lengths each of belting and of ribbon. Center the ribbon on the belting and sew along the long edges.
3. Fold the towel in half with right sides facing to measure 15x12 1/2 inches. Using 1/2 inch seam allowances, sew the 12 1/2 inch side edges together, leaving the top edge open. Turn the bag right side out.
4. Position one handle on the bag front, aligning the ribbon and keeping the raw edges even at the top of the bag. Sew the handle to the bag front. Sew the remaining handle to the bag back.
5. For the lining, cut a 15x25 inch rectangle from the print fabric. Fold the lining in half to measure 15x12 1/2 inches. Sew the 12 1/2 inch side edges together, leaving the top edge open and an opening on one side for turning. Trim the seams; do not turn. Slip the bag inside the lining with right sides together. Sew the top edges of the bag and lining together; turn the bag right side out through the side opening. Slip-stitch the opening closed. Tuck the lining into the bag and press.
6. Sew the star and heart buttons to the bag front over the ribbon. Sew the snap to the top center of the lining.