According to the Flag Code, when the condition of a flag makes it unsuitable for service it should be retired with dignity. The flag might be worn, torn, faded or otherwise damaged. Holding a flag retirement ceremony is an excellent way to teach youth about how to care for flags with respect.
Younger Scouts especially may be under the impression that disposing of a flag by burning is disrespectful. Take some time beforehand to explain what will happen and why. A short discussion before you begin will help them understand why retiring a worn flag in this manner is appropriate. You might even want to consider saving the grommets as a token of respect also.
This graphic below , which will help you explain how to retire a flag, was created by A Stars & Strips Flag corporation . Visit their site for more information.