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The tutorial shows how to DIY a knife pleated paper lampshade for less than $5, saving money compared to retail. Materials needed include poster board, pencil, ruler, hole punch, glue, book rings, and a knife. Marking one-inch intervals on the poster board with a ruler helps create the pleats. The size of the pleats can be adjusted based on preference. Following these steps allows for a cost-effective way to create a stylish lampshade.