Here is a handbag design I made. The whole thing is made out of wood with a living hinge. I put a magnet on the end of the lip thingy to hold it closed. Holes in the side are for the straps. I just bought a leather strap from somewhere else and used that on the bag.
You may find that opening and closing the lid causes the living hinge to fail. I tend to line mine with fabric or leather so that even if the wood cracks the hinge still maintains adhesion
One thing that can also be done to avoid that is adding more of a radius to the living hinge, that allows for more flexibility and less stress on the joints
You might consider lining the living hinge with cloth. This will help take some of the stress from repeated use and keep the hinge in operating condition even if one or two of the small areas break.