As a newbie, I don't have many scraps (yet!), but I throw nothing. As I am working on a quilt, I keep two baskets on the windowsill by the sewing machine: one for reusable scraps (as small as 1 1/2") and the other for tinier bits and strings that I'll use as filling for my pets' beds. I found to my surprise I loved appliquéing, and the scrappier the merrier.