Were any of you Girl Guides (or non UK equivalents?) If so did you have things called camp blankets for use when you sat around the campfire singing? This is what my mums looks like. Note the hole for your head at the top.
It was tradition to sew on badges that were significant (others were allowed too!) We went on various camps and got badges from them.
I say looks like and I should have said looked like. My mum gave it to me as she knew I was looking for badges for my own blanket (without the hole for your head) I've taken the badges off this one and have a pile ready for my own blanket. I took them off carefully so that I can reuse the blankets - I know what I want to use them for so keep watching although it may take a while :)