Here's how I currently store my scraps of yarn. I separate them by fiber or gauge usually. I always have good intentions of making something with them someday.
My sister, Lynn, mentioned she thought the bins of scraps were pretty with all the different colors so I decided to use them for her hat. She's a big stripes lover so it worked out perfect. I was really excited for her to open it. When she did, she loved it so much she wore it all Christmas Eve.