I did all this free hand, no stencils. And I have to say, I think I did a pretty good job. The supplies I used was: felt, ribbons, school glue, hot glue & glue gun, and scissors.
I first cut out all the triangles, then started cutting out letters. Then it was time to glue it all together. I used white school glue to adhere the letters to the triangles and hot glue to adhere the pennants to the ribbon.
I love that it was no sew and I could do it sitting in the living room while watching a movie.
I had decided to do it in a variety of colors because then I can use it for any birthday. But I did make it for my son't first birthday. I had made several things for my daughters first birthday and wanted to make him some special things as well. So, for him I made this banner, am making a crown and a shirt. I did buy some small round cake molds so that I can make his personal birthday cake (for the photo op too).
Anyways, I figure this cost me around $3 to make. Certainly MUCH CHEAPER than buying a fabric pennant banner, probably even cheaper than buying a paper one that would get wrecked after one use.