First is an infinity scarf. They seem to be pretty popular at the stores. Depending on the fabric you use, soft cotton knits for the younger crowd, polys for the more adult crowd. Here is the link to a tute, I use 1/2 yard of fabric when I make mine: (its at the bottom of the page)
http://www.simplydove.com/search/label/Sewing In this tute, she makes her scarf longer than I do. I thought hers was a little too long. I believe I shortened it by about seven inches. My colleges and high school daughters just love these.
Another thing I saw which was really cute was a coffee cup cozy. It doesn't take much fabric at all. Use one of the little carboard ones that you get at Caribou or Starbucks as your template. I put fusible batting inside. Close with a chunky button, held with a elastic hair pony (then you can use lots of colors and it's very stretchy). Below is a link to a picture of how to display it for a teachers gift
http://pinterest.com/pin/103793966381614444/