Martha Stewart Living, May 2007
First, cut out a circle big enough to cover the lid -- including the lip, inside and out. Put the fabric face down, and apply spray adhesive. Center the lid on the fabric.
Fold up a section of the fabric so it adheres to the outside of lid lip. Snip a slit every inch or so on the remaining unadhered fabric (make sure not to cut past the edge of the lid). Press flaps over so they adhere to the interior of the lip.
Fill jar with sewing notions (or other miscellany), screw on the lid, and get inspired for your next project.
Jam jar with lid
If you're going to do creative work, your craft supplies should look the part. Here's a way to decorate basic jam jars with lively fabric scraps.