Call me crazy, but I think the poncho craze is about to hit us again! Thankfully they are pretty quick to knit up and little kids looks super duper cute in them.
I used the Yarn Harlot's Poncho pattern, however used a thinner yarn and small needles - and viola - instantly down sizes to fit a child!
This poncho was knit with two skeins of cascade 220 and I used a third for the fringe on 6mm needles. There is enough left over of the 3rd skein to knit child size mittens or fingerless ones!