When I went to my serger I remembered it still looked like this because little fingers keep causing the loopers to become unthreaded. I was not about to thread a serger with a kiddo pulling down (I mean picking out) fabric and stretching (I mean measuring) yards of elastic so I went with the French seam or enclosed seam method for the side seam.
If you don't have a serger - or just don't have the time to thread it - here's how I make a French seam. This is an enclosed seam that will not fray or unravel and makes for a very neat finish.
First, cut fabric selvage to selvage (I cut 18" for a 4 year old)
Next, fold fabric WRONG SIDES TOGETHER. This part is counter intuitive.
Sew seam with a 1/4 inch seam allowance.
Press seam to one side.
Now turn fabric RIGHT SIDES TOGETHER, enclosing the first seam. Press.
Sew with a 5/8 inch seam allowance to encase the first seam. All the raw edges are now enclosed. Press to one side.
Press again from the right side.
Finally, sew casing for the elastic. Thread elastic. All done!
Note: It's easier to hem the skirt before sewing the side seam - when the fabric is flat.
This seam will hold up to numerous washings without fraying or unraveling. Let me know if you give this a try.
I will leave you with these words of wisdom: A girl can never have too many spring skirts!