The question of how small is too small is one we can only answer ourselves. If you paper piece or like to do small blocks, then you would want to keep smaller scraps. If you only do bigger blocks, them gift your smaller pieces to someone who will use them. I used to save every single piece, including pieces from other quilters from my group. It was crazy! I have a friend who is helping me. Also, we need to take into consideration how much space we have for storing. Not a lot of space means that we can't save as much as we might want.