Inserted a bag image from the XCS images. I set the engrave settings.

 Then did an outline and set it to 2mm and set it to cut settings.

Inserted a circle and place it on top of the outline, in the top middle.

Clicked combine unite, so the circle was one with the outline. 

Inserted another circle and made it smaller and placed it in the circle i just attached.

Highlighted the cut line + circle and set the cut settings.

I highlighted over the whole image and grouped it.

I then clicked on txt and filled out the name Mary and adjusted the size, so it would fit on the left bottom and placed it where i wanted it and set the engrave settings.

Once all that was done, i grouped everything.

Once it was engraved and cut, I used paint pens to color the bag.

I added a hoop and a chain and hung it on a bag.

Kids can hang it on their backpack with their name engraved on it.