I made this little peg bag for the kid's play clothesline as they love to hang out the 'smalls' while the rest is being hung on the big line. I saw this idea in a British Country Living magazine a number of years ago but can't find their image. Anyway, this is almost exactly the same except they used two different (and very pretty!) fabrics together and I have utilised a napkin I don't use for it's original purpose anymore.
All you need is a square fabric napkin, 4 buttons, needle and thread, scissors, string and a carabiner (and a match - which I forgot to include in the photo).
Attach a button on each corner of the napkin using a match between the button and thread to provide room for a shank underneath. After securing the button with 3 or 4 passes with the thread, bring the thread back up through the fabric to underneath the button (I did have a photo for this step but I can't get it to work on here - grrr).....
then wrap this thread around the threads underneath the button a few times to provide the secure shank which gives you room to wrap the string under it later. Pass the thread back through to the wrong side and securely knot it and trim the thread. As mentioned before, do this for all four corners of your napkin.
Cut two pieces of string (approx. 20cm each), fold in half and knot one end. Wrap the loop around one button and twist the string until it is quite tight but not curling back on itself.
Put the other end around the diagonally opposite button on the napkin. The twist will keep the string securely on the buttons.
Do this for both diagonal duos.
Loop the carabiner through where the string crosses.....
and hang from a clothesline. You can use this yourself of course, not just for the kids. It actually holds a surprising number of pegs and the carabiner makes it easy to push along the line with you as you work. I also use it inside with my drying line. Please forgive the less than stellar colour coordination of the napkin, buttons and carabiner but I was trying to utilise what I have instead of purchasing anything! My version of Reduce, Reuse, Recycle!