Susan's come up with yet another use for baby washcloths (they're surprisingly versatile):
One of my New Year’s resolutions is to reduce our household waste, including paper products. We’ve started using our old baby washcloths as napkins for the kids. They can be used wet or dry at mealtimes, and afterwards, I rinse them (assuming they’re not too messy) and use them for the whole day.
Each kiddo has his own hook to hang his cloth on. At the next meal time, each kid goes and gets his own “napkin” to put beside his plate at the table.
Related: Baby washcloths cut paper towel use