Looking for the best yarn for knitting on a budget? These are my go-to picks! Find free patterns on my free knitting pattern page.
If there’s one thing I’ve learned in over 30 years of knitting, it’s that a tight budget doesn’t have to mean tight creativity. You can make beautiful, high-quality knit pieces without spending a fortune—if you choose your yarn wisely. Whether you’re knitting for your family, whipping up gifts, or designing for your own blog or small business, the right yarn makes all the difference. That’s why I’ve put together my list of the 6 best yarn for knitting on a budget—and yes, I’ve knit with every single one of these.
This list is packed with soft, reliable, affordable yarns I reach for over and over again. I’ve also linked to free patterns that I’ve designed using each yarn, so you can see them in action!
1. KnitPicks Mighty Stitch (affiliate link)
If you’ve been around my blog for a while, you’ve definitely seen me talk about Mighty Stitch. It’s one of my top contenders when I’m choosing yarn for knitting on a budget—especially for sweaters and baby knits. It’s soft, squishy, easy to work with, and comes in a rainbow of colors. What’s not to love?
I used Mighty Stitch for the Michael Pullover—a cozy, top-down raglan I designed with boys in mind (though it looks great on girls too). This yarn holds up really well to wear and washing, which is a must-have in our busy home of eight kiddos!
For me, Mighty Stitch is the kind of yarn for knitting on a budget that doesn’t feel like a compromise. It knits up beautifully, looks professional, and keeps the bank account happy.
👉 Michael Pullover Free Pattern
🧶 KnitPicks Mighty Stitch Yarn (affiliate link)
2. Hobbii Fluffy Day (affiliate link)
Now let’s talk about fluffy. I know that cloud-soft haloed yarns usually come with a high price tag, but Hobbii Fluffy Day is the exception. It’s the perfect yarn for getting that dreamy angora or mohair look—without the cost (or the itch). And yes, it absolutely earns a top spot on my yarn for knitting on a budget list.
You can see it featured in the Angora Bear Bonnet, one of my most popular photo prop designs. It gives that soft, sweet fuzz you want for newborn bonnets, but it’s durable enough to hold up to little fingers and photo session mishaps.
I’ve also used it for shawls, accessories, and lacy sweaters. It blocks well, drapes beautifully, and feels way more luxe than it costs. If you’re looking for a budget-friendly yarn that looks expensive, this is it.
👉 Angora Bear Bonnet Free Pattern
🧶 Hobbii Fluffy Day (Affiliate link)
3. Premier Yarns Cotton Fair (affiliate link)
Let’s talk about warm-weather knits and lightweight baby garments. Premier Yarns Cotton Fair is a cotton/acrylic blend that’s smooth, breathable, and just plain easy to love. It’s also very affordable—so it definitely qualifies as yarn for knitting on a budget.
I used this yarn in the Baby John Hooded Cardigan, a sweet little baby sweater that’s perfect for layering. The stitch definition is crisp, and the yarn holds its shape so well—which is especially helpful when you’re sewing on a hood or buttons.
If you’ve ever struggled to find budget-friendly cotton that doesn’t feel stiff or splitty, give Cotton Fair a try. It’s smooth, soft, and makes knitting a joy, not a chore.
👉 Baby John Hooded Cardigan Free Pattern
🧶 Premier Yarns Cotton Fair (affiliate link)
4. KnitPicks Heatherly (affiliate link)
Sometimes you want soft and squishy and a great color palette. That’s where KnitPicks Heatherly comes in. I love this yarn for children’s clothing—it’s plush but lightweight, and the pastel shades are absolutely dreamy. This one is a favorite when I’m looking for yarn for knitting on a budget that still feels like a special treat.
You can see it in the Ocean Skirt—a sweet and stretchy girl’s skirt with just enough flair and bounce. Heatherly works beautifully with ribbing, lace, and texture stitches, and it wears well through lots of play.
This yarn blends affordability with a high-end look, and that’s a combo I’ll take every time. If you’re knitting for little ones (or just want to spoil yourself), it’s a winner.
👉 Ocean Skirt Free Knitting Pattern
🧶 KnitPicks Heatherly Sport (affiliate link)
5. Premier Yarns Anti-Pilling Bamboo Chunky (affiliate link)
Let me just say it: I love a chunky yarn. It works up fast, it’s warm, and it’s perfect for last-minute gifts. But not all chunky yarns are created equal—some are stiff, some shed, and some lose their shape. Enter Premier Yarns Anti-Pilling Bamboo Chunky, a go-to yarn for knitting on a budget that actually delivers on softness, drape, and durability.
I used it in my Peace Cowl pattern, which is a textured, cozy neckwarmer perfect for chilly days. This yarn makes the stitch texture pop, and it feels buttery smooth while you’re knitting it.
And bonus—it’s anti-pilling, which means your finished pieces will stay looking fresh and tidy even after lots of wear. I always keep a few skeins of this one in my stash for fast projects that still look and feel luxurious.
🧶 Premier Yarns Anti-Pilling Bamboo Chunky (affiliate link)
6. KnitPicks Brava – Honorable Mention! (affiliate link)
Okay, I said six, but I have to give a quick shoutout to KnitPicks Brava. I’ve used it for everything from hats to sweaters to charity projects. It’s soft, budget-friendly, and comes in tons of colors. It’s not as silky as some of the others on this list, but when you need yarn for knitting on a budget that just gets the job done, Brava is a dependable choice.
I love using Brava for Pumpkin Spice Beanies. It comes in the PERFECT heathered orange that is so earthy and dreamy. It’s also baby skin safe and machine washable. These beanies get handed down from 1 baby to the next because they last so perfectly.
👉 Pumpkin Spice Beanie Free Knitting Pattern
🧶 KnitPick Brava (affiliate link)
Why These Yarns?
You might be wondering why these made the cut. Here’s what I always look for in yarn for knitting on a budget:
- Price per yard – I want my yarn to go a long way, especially when knitting sweaters or blankets.
- Washability – In our house, machine-washable yarn is a lifesaver.
- Softness – If it’s scratchy, I won’t enjoy knitting with it—and neither will the person wearing it.
- Stitch definition – I want those cables and lace motifs to pop.
- Color range – Because we all love a good palette!
These six yarns check all those boxes and more. And the best part? None of them break the bank.
Final Thoughts on Yarn for Knitting on a Budget
I hope this gave you some inspiration for stocking up on yarn for knitting on a budget without sacrificing beauty, softness, or durability. Every single one of these has earned a permanent place in my stash—and I’ve used them in real patterns you can try for free today.
It’s easy to get overwhelmed by fancy yarns or feel like you have to spend a ton to knit something lovely. But I promise you—affordable yarn can be every bit as beautiful. With these options, you can create garments and gifts you’re proud of without stressing over price tags.
Tell Me Your Favorites!
Do you have a favorite yarn for knitting on a budget? Have you tried any of these? I’d love to hear what works for you! Leave a comment below and let’s trade recommendations—because knitters helping knitters is what it’s all about.
This post contains affiliate links. That means I may earn a small commission if you click through and purchase, at no extra cost to you. Thanks for supporting my blog!