One of my favorite ways to save money on fabric is to use sheets! Yes, sheets--the kind you put on your bed!
Good sheets for sewing can be found at lots of places: yard sales, Goodwill, Salvation Army stores, friends, and your own linen closet. Last week I got three coordinating twin-size sheets in great condition (soft from being washed many times, no stains, no pilling) for $.25 TOTAL! From these sheets I'll be able to make several dresses for Katie and Audrey.
Another great thing about sewing with sheets is that they come out of the dryer looking great. As with any cotton, you sometimes need to touch-up with an iron, but that becomes rarer and rarer the more they are washed.
White sheets are great for linings. A friend worked at an up-scale hotel chain and said they just threw away sheets once they got a little hole anywhere. She gave me several king-sized sheets with tiny holes near the edges. The hotel was going to throw them away....I'm still using them for things from linings to quilt backings. It doesn't hurt to ask if you have a hotel nearby!
Head on over to Biblical Womanhood for more Frugal Friday ideas!