Cheap and easy Christmas gift. Take a new hand towel and some scrap fabric. Sew the scrap fabric to the hand towel and you have a personalized gift. This came about because I was too cheap to buy a Thomas the Train towel for my son. Now I can make one for everyone on my list using hand towels and bath towels and personalizing them to whatever "theme" each person is into or things they collect. Great for when you find towels on sale and only have a little bit of that special fabric.
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A good craft for kids gifts. You can also make wedding presents, housewarming presents, etc.