Otterburn PQ small knitting bag! I've got three of these bag (two small ones like the photo, and one large bag) and I use them for my current hats in progress.
The small one is the perfect size for one skein of yarn, which is all I need for my hat projects. I toss my current hat in progress into the bag yarn-first, and then I can knit along on my hat while we play trains, head out to grandma's house (when I'm not driving), and just about anywhere else! The bags keep my yarn on-hand while also keeping it out of the way, so I don't have to worry about the yarn being dragged around the house for spider web making (true story).
Thanks to Jesabelle, one lucky reader can win a small striped Otterburn PQ bag of their very own! Simply comment to this post, sharing what project might find its way into your bag first, and I'll pick a winner next Friday!