DIY Graphic Hat
The Supersimple, Budget-Friendly Way to DIY Instagram's Most Popular Hat
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The iron-on letters package will likely advise you to place a towel between the letters and the iron. Personally, this didn't work for us, so after a while we ditched the towel and carefully ironed — on a fairly hot setting — on top of the plastic layer (which, surprisingly, didn't melt).
And if you're nervous about ironing a hat (um, can you iron a hat?!), don't be. People use this method to straighten out brims all the time.