The US flag is the symbol of our country and every Scout should know how to handle it. One thing I emphasize when working with Scouts on flag etiquette is that the most important thing is respect. Scouts are going to make mistakes from time to time, but they should always do their best to be respectful.
How to Fold the US Flag
(see the printable copy for diagrams)
Two Scouts should hold the flag by its corners. They should be standing by the short sides.
The flag should be kept parallel to the ground, about waist high.
If the flag is large (or the Scouts are small) you might need one more Scout to keep the middle from touching the ground.
Fold the flag in half, so that the blue field is on the lower side.
Fold it in half again, so that the blue field is on the outside on both the upper and lower sides.
Make a triangular fold. Bring the striped corner of the folded edge to meet the open (top) edge of the flag.
Continue to make triangular folds along the entire length of the flag. It helps to keep the flag tight while doing this.
When the flag is completely folded, only a triangular blue field of stars should be visible. If a bit of the flag is not in the triangle, tuck it into the fold.