I bought a twin bed sheet set from Target last year, and it came packaged in a little fabric bag with a velcro closure. I figured it was too floppy to be of any use, but I felt weird about tossing it. So I put it aside for another day, hoping that it would prove itself in the future. And it has.
I turned it into a little tote bag for my 2-year old to use at daycare. It's pretty much the same bag as before, but with a handle and a name tag. I simply sewed up the open side of a strip of double bias tape (which was cut about 6 inches longer than the width of the bag), and folded and sewed the ends to the bag. The name tag is a scrap piece of this ribbon; her name was hand-printed on it, and the tag was sewed onto the front flap.
The bag has proven handy in keeping her extra daycare clothes organized in one place. I also love that it was put together using 3 scraps I had on-hand: the bag itself, the bias tape, and the ribbon.