It would be nice to create a quilt out of children's old clothing, wouldn't it?
Start by cuttting out the favorite Disney character out of their old tshirts or sweatshirt and incorporate them on a quilt. You can start out with a small pillow quilt. I like instant gratification.
Find some scrap material and use them with girl's skirts or dresses. Here's a beginner project:
If you don't know how to sew or quilt, there are several people on Etsy, that will customize a quilt for you. You would send in your child's clothing and the crafter will create a beautiful quilt for you. Make sure you contact the owner of the Etsy store first.