I like what quilter jode said. I saved a small piece of my son's favorite blanket when he was a baby (it was practically falling apart). I am planning on making a bear and binding the edges with blanket binding to be the blankee for the bear for my son's first child. A memory of my son with something new. When my daughter was ill I made her a small fabric scrapbook square. It was a nine-patch with each section sewn with something different she liked or did. I cut her prom dress, a swatch from a dress when she was little, varsity letters from school, etc. Perhaps a memory quilt would be good - the fabrics could be used as background and you could applique onto it.