I actually scrapped anything less than 2.5" and then I played around in EQ6 to come up with a small on-point checkerboard quilt that used up as many of my leftover squares as possible, along with squares of my go-to white floral print that I always keep on hand in bulk.
Here is the math for my WIP (12 x 12 squares) and several other basic projects, in case you're interested ...
"Fabric A" would be the blue squares below, while "Fabric B" is the pink. If you're going for more of a scrappy look, as long as you had enough squares to equal A+B in the table above, you're set.
Here's an example of a 10 x 10 layout:
To save time, rather than cutting individual setting and corner triangles, I pieced my project in diagonal strips, and just used a whole white square at the end of each diagonal row. Once I've sewn all the rows together, I'll just cut off the white edges (making sure to leave a 1/4" margin for binding) to square up the quilt!