1. You only need to crochet one square, the size is up to you, so you choose. The red square is larger than the blue one. You must use a solid stitch, no Granny Squares because they have 'holes' which would allow your items to fall out. I made mine using the hdc stitch.
2. To start your folding process turn your square on the diagonal.
3. Fold in three points, you may have to adjust them until they fit just right. I do this first to make sure I have made it the correct size. Then I pin them in place, while I use yarn and a tapestry needle to sew the short seams, the edge of one point to the edge of the other, and then the final seam. You now have an 'envelope' that is all sewn together.
4. Now work a row of sc around the edges of the pocket and around the flap. Work another row of sc but when you come to the point of the flap that folds down to close your envelope, make a chain loop that will be your buttonhole. The number of chs will depend on the size of your button. In the photo I am using a large button so I have chained 4. Now using the same yarn sew your button on where the three corners meet and make sure it is lining up with your buttonhole. 5. Your gift envelope is now finished. Wow! You did it, and it wasn't hard was it? It sounds like there are a lot of steps to this project and way to much trouble, but it really isn't if you can just 'see' it first. I usually tell people to take a piece of paper and fold it so they can understand the concept before they start. It is also easy to see how large you need to crochet the square to wind up with the size gift envelope you need. Or you can simply take an existing envelope apart so you can understand a little better how it folds together. So enjoy this project and give me a yell if you have any questions.