The answer is different for everyone. When I am done with a project and there are small pieces of fabric left, I take the time to cut them into 3" squares, 2.5" squares, 2" squares, and 1.5" strips. Nothing smaller for me. Whatever I can get out of the fabric. These squares and strips have their own containers. It's fun to make little table toppers with them, or put into scrappy quilts. It's fun to surprise people to, the ones I know are collecting 2" squares for various doll quilts and such.