Using your scraps of yarn.

Since I love to felt, I often take several very small strands of a variety of colors, take them to the sink (only works with wool) run Hot water and add a little liquid dish soap (I use Dawn). I work the wet yarn in to a ball, and make embellishments, felt yarn balls can be added to just about anything, trim on arm warmers, top off a hat, trim a scarf, make a necklace the list goes on and on,

Here's a link to a neat article I found about using scrap yarn - DON'T THROW IT AWAY

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How to Use Scraps of YARN