I don't have the patience to work with the little peices, but I do save them for a lady who does. It all goes in a back, bits and pieces, selveges etc. She comes into the food bank where I volunteer and is delighted to get them. Nothing wasted. smile.

I mean in a bag. oops...

Smaller than a fat eighth, and I toss it. I don't have room to store the scraps, nor the inclination to sort through them to find what I need.

I have started using Bonnie Hunter's http://quiltville.com methods so now my smallest is 1 1/2" sq. If I have to do strips, then 2 1/2" makes the most sense to me since that is a very commonly use strip. all this has probably been written but I have read all the posts!

Skittl-have you considered saving them and giving to a church or charity like Quilts of Valor to use? those are pretty big pieces yet! or a friend or quilt guild? I bet any of those would love it and then you only have to store temporarily.

For me 3x1 1/2 in. for rectangles or 2 1/2 x2 1/2 in. if square.

No, because there is still the storage issue. I save selvages for a friend, but that is it.

Our guild doesn't take small scraps. I'd have to sew them up into blocks (they take orphans) and I don't really like piecing.

All good thoughts and directions. I've actually used a few myself. But when it comes to those pieces I consider tossing, into a pillowcase (only soft cottons/flannels/batting). Once the pillowcase is about 2/3rds full I sew it closed and give it to my friends for their furry friends to enjoy. Nothing goes to waste

I save as small as I have room for. I just finished a prayer flag (info in cloth, paper, scissors magizine) and I used a teeny, tiny corner (less than 1/2") for applique. Then I used some old string from my thread catcher to make a tree and bush. Save as much as you can store IF you do techniques other than just piecing.
Look at your leftovers and evaluate them according to what you do or think you'll do. Sometimes saving scraps can become overwhelming because you feel like you have to do something with them.

I save almost all my scraps . When I have a pile, I start cutting from the largest to the smallest squares. I start with 7 inch all the way to 1 inch. I then put them in plastic bags and label the size on the outside. I also cut rectangles 6 x 3 inches , this come in handy when mixed with the 3 inch blocks and then a big square. I also save long strips for my strip quilts. I guess , I just don't like to throw material away.. A lot of this I give away at my church sewing/quilting classes.