The second project that I have my students make is a dishcloth. This teaches how to read a pattern and switching from knit to purl in the same row. I find most of my patterns online (thanks to all of those who post them.) The younger kids I teach had trouble keeping track of where they were in the pattern. In this case I had them cast on about 30 stitches and knit 5 rows garter stitch, The next row would be knit, and the next row would be knit 5, purl to the last 5, knit 5. Repeat these two rows until the cloth is almost square. then knit 5 rows garter stitch.
The web site for dishcloth patterns is: