First of all, you have to take some balloons and blow them up. Each balloon will be used to make one basket. Here, you do not need to worry about the colour of the balloons, as you will pop them all in the end.
Take a bowl and combine 1 part glue to 2 parts water. You want it to achieve the consistency of pancake batter. It should neither be too stiff nor too dilute at the same time. You will need more mixture when making a bunch of baskets. About 4 oz. of glue and 8 oz. of water will make one basket. Add more water if the mixture is too thick to work with.
Take the yarn, dip it in the glue mixture and coat it well. Now hold the balloon by the tied end. Wrap the glue covered string around the bottom of the balloon (the wide end) – this will be the basket part. Change directions to make it look weaved. You do not have to use a uniform design. This makes it easier for the kids to create a perfect structure of the basket.
It is now time to make a handle. For that purpose, you will have to wrap string across the top of the balloon, in the shape of a handle.
Place the balloon on a paper cup over night to dry. When dry, use the pin to pop the balloon, and remove the latex that's left over.