I rinse and cut our plastic milk jugs in half. I cut them above the label. Then I cut a piece off and tie it to the little basket. They are really cute.
I poke holes in the basket and the little handle and then tie it with yarn. I have not decided how I am going to decorate this one as of yet. I thought of using buttons on each side, but I decided that would be too much for the baskets, kind of overkill.
I might let my daughter decorate them with duct tape.
You can actually use ribbon and such but I have a lot of yarn. I use the large needles with huge eyes for yarn and you can actually sew through this type of plastic.
I also did one with fractions rules on it, with a sharpie. Last year we did an orange juice half bucket with the main ammendments that the young ones have to learn in fifth grade. :)