I have finished Eva's grey cardigan. I think grey it is the perfect colour for a child's cardigan, it goes perfectly with everything. I used the Cardigan Rose pattern I bought on ravelry. It is a very easy to follow pattern. I made a size 4 and fits Eva perfectly now. I used 4 balls of Moda Vera 8 ply pure wool I bought in a Spotlight sale for $1.50 each and I bought the 2 buttons locally yesterday for 20c each. So in total this cost me $8.40 (plus my time and labour). More details on ravelry.
I wasn't my intention to knit a bargain cardigan, I never intentionally knit to try and save money. I mostly knit to make something nice that I can't find in a shop as it is nearly impossible to find anything nice that is made from wool rather than acrylic.