Jess from the Craftiness is Not Optional blog has a great tutorial on drafting this simple a-line dress which could be embellished in a hundred different ways. Love the bias stripping and buttons though!
You only need two bandanas, elastic and ribbon. This cost $5. If you already have material, it can cost even less. A very cute dress that can grow with the girl... can be worn as a cute long shirt with tights for pre-school aged!