I have a wicker wastebasket that I use for all of the wool yarn bits that I trim from my knitting, as well as leftover yarn too scanty to use for knitting. I use the accumulated bits to stuff knitted toys. It mixes well with catnip that I use for stuffing knitted "mice" that I make for extended family cats each Christmas, too.
That's a great idea, stitchellen. I always wonder what to do with those little bits and bites. I keep them, but they're just accumulating at this point.