My scraps are divided by width of the scrap. I go from 1", 1.5, 2, 2.5, 3 and 5". Then I have a container full of orphan blocks, larger scraps but less than a fat quarter, cutoffs for when I'm stitching up sashings and borders as I do the diagonal stitch instead of the straight stitching so some of those triangles cut off can get a good size enough to be half of a HST. My fat quarters are divided by color in containers though.