Use old jeans, cut into squares, add some batting material to the center, sew edges together. Either sew or draw the "X" and "O" onto them and instant tic tac toe game for kids! - Cool to do with beanbags too.
A Couch Caddy - Perfect if you take your crafts along with you when you know you'll be sitting for some time. This would keep everything at hand so there'd not be a need to keep digging thru a bag to look for what's fallen to the bottom!