My mom sells these rag quilt kits in her etsy shop and I have yet to put one together, until this weekend. They cost $40 -$45 and that includes batting. To me that sounded like a lot of money but then I got thinking.... It is almost 6 yards of quality flannel. so a good flannel is around $6 a yard and then you would have to buy your batting. It adds up. Plus I can't imagine having to cut all that buy hand. Yuk! This is already cut for you.
Moral of the story: If you have a good neighbor that needs a super cute baby quilt, buy a rag quilt kit. Bonus, if you were planning on making a rag quilt and you bought the fabric but couldn't talk yourself into doing it yet (because it takes forever to cut it by hand) you could go into my mom's quilting shop and cut it for just $10.