Well, no need to fret, you can keep those sweaters around and put them to good use as stockings and elf costumes! This would be a good beginner project as well, for parents who want to teach their children how to sew. My family usually gets together around Christmas to do some kind of craft project and this is a terrifically easy and inexpensive project that can teach kids to be resourceful (just make sure they know not to go around cutting up anything in their closet!).
Once you are finished you can either use the rest of your sweater to make two more stalkings, two more elf hats, a stalking and an elf hat OR you can check out my new instructable on how to make a Christmas wreath with the remnants!