Knit 16 or 20 rows with worsted weight yarn.  Take the sts off onto a long piece of yarn to be used as the necklace, using a yarn needle.   Fasten down the yarn end at the top. Draw the bottom end closed.  Add a tiny pompom and/or dangles with beads.  On the longer bag, you can run the drawstring thru the knitting about 3 rows down from the top edge and put beads around the top for decoration.