For this bag you will need Worsted Weight Yarn. (Must be 100% wool if you choose to make the felted handle!)
Suggested needles are US 7 and 8 or US 6 and 7, 24" Circular or Straight Needles and two US 10.5 Double Point Needles if you are making the felted handle.
You will also need lining fabric, a magnetic snap or hook-and-loop tape for closure, 2 buttons, and handles/straps.