For this project you will need a 3.5mm hook, 3 light worsted weight yarn 3ply US (8 ply AU). Also you will need some plan old rubber bands, with a cover over them, so that you can crochet over them, a plan rubber band wouldn't have enough strength to be able to work with very easy. So get some like you see below, that already come with some sort of cover.
Ch = Chain
sc = Single crochet
sl st = slip stitch
sp = space
st(s) = stitch(es)
Go in through the center of the rubber band, pull up some yarn, and then grab more yarn to complete you first sc. Tighten up the stitch to the rubber band if you can.
Now continue around, single crocheting and hiding you rubber band. Keep pushing your stitches tighter against one another, but not to tight where you won't be able to work with them later on.
When done, sl st into beginning st and ch 2, then in the same st put two double crochet's.
Now put 3 double crochet's into the next stitch and all stitches around. When you get to the end of the row sl st into beginning st
repeat round 2
the picture below shows what your scrunchie should look like after round 3.
If you want to use another color for the border then sl st to attach and sc in all sts around.
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