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I have done this same thing! woo hoo
here is a pic of one I made for my daughter.
I did my first time embroidery on it to fancy it up a bit and used the gemagic on the other side
http://img.photobucket.com/albums/v47/jubalint/kellyshorsebag.jpg
http://img.photobucket.com/albums/v47/jubalint/kellyshorsebag1.jpg
Great idea! Another one is to save the cut off ends to patch the holes little boys (and big!) always seem to put in their pants.