I took 1/2 a yard of some tropical/beach/sealife fabric. Bought a pillow insert. Which is the middle of the pillow in the form of a pillow already, I purchased those at Joanns for anywhere from $4.99 - $13.99 depending on the size.
Layed the fabric on a table still folded in half. Place the pillow in the middle and all the way over to the folded egde of the fabric. Cut around the pillow, leaving 3/4 of an inch for the seam. When thats done, fold the fabric so that the outside design is facing each other. Sew on the width (2) sides first. Flip fabric thru it's self, so your looking at the outside design and there is one side yet to be sewn together. Slip the pillow thru the opening. Hand sew that opening closed. There ya go. You got your self a pillow, with any fabric covering.
I spent about $10-15 on each pillow. That included the fabric, pillow insert and the thread to sew it up with. I had lots of fun and it's so fun. You can make these in about 20 minutes if even that.