I don't cut yardage until I need it.

My scraps usually get cut into strips from 2-1/2" to 1-1/2" for basket weave scrap quilts.

If I decide to sew 2-1/2" squares then I cut them to that size. They finish at 2".

I haven't done that too many times.

For my donation quilts I find 7-1/2" squares work nicely. 6 across and 8 down. I alternate them.

when cutting up scraps....I usually cut them into the larger sizes first and then go on down unless I have a project already in mind to do scrappy. For longer scraps at least 12 inches long, I cut 2.5, 2, and 1.5 inch strips on my accuquilt. for my squares I cut 5, 3.5, 2.5,and 2 inch squares. I generally keep larger scraps (less than a fat quarter or less than 1/2 yard width of fabric) sorted by color intact until I have a specific project. I find keeping the larger scraps intact gives me more options when a project comes up...but it is fun to some already cut up to make 5 and nine patches when I have time. I also have a large box of strings, a box of selvage edges, and a box of crumbs...which are pretty small like left over triangles or odd shapes.

I don't cut down scraps either. I have a large pretzel jar that I throw the small pieces in and when it is full I usually ask who wants it. A friend of mine is in an assisted living facility and hasn't been able to quilt for years. Her daughter has given me all her fabric. There were so many bins of fabric she never touched. So another friend, Carol (who is my quilting buddy) and I went through each bin, we split the fabric we liked and gave what we did not want to a local thrift store. (I still have so much fabric that I am contemplating cutting out a fat quarter of each piece and give the rest away. There is so much I know I will never use - and why not put it in the hands of people that will. I would love to send it to folks here but it would an arm and a leg.

For cutting sizes check out Bonnie Hunters scrap savers method. Works for her. She churns out scrap quilts like the scrap Queen she is! I just tend to toss fabrics by color into bins until I find something to make with them.