Chasing Fireflies always has the best stuff I swear. Check out these cute butterfly beach towels. They'll set you back about $60 which I think might be a little expensive for a towel but you could also totally DIY this. It looks like it has pockets for your child's hands and a hood for their head. I wouldn't buy terrycloth fabric from the fabric store I would just buy cheap store bought towels instead. I've found that most fabric store terrycloth is one sided, expensive and has a limited color selection. If you go to an outlet store or Walmart and buy towels for about $3 a piece you'll have a better selection and better quality towel.