Virtually every pattern, be it knitting, crochet, or weaving, starts with the call to make a gauge swatch.
In the fiber arts, "gauge" refers to the number of stitches per unit width. For example, a pattern may call for “a 16-stitch gauge swatch on size #8 needles that measures 4 inches.” Such information will also be found on a skein’s label. This means that when knitting a square of 16 stitches by 16 rows, a 4 inch by 4 inch piece of material should be the end product. Furthermore, each inch should hold 4 stitches. If this is not the case, the project will be either too big or too small.
Certainly, there are times when gauge matters. When knitting a sweater, socks, gloves, or anything that will fit a person (or pet), guage certainly will need to be checked. If this is not done, and the gauge is incorrect, the finished item will not turn out correctly. For example, a sweater intended for a child will fit a basketball player. Or, a sweater for a basketball player will turn into a double-knitted afghan. It could go the other way and fit a Chihuahua. Therefore, when making something that needs to be a specific size, ALWAYS check gauge. It’s only a 4 inch by 4 inch swatch, and it will save a world of hurt. The importance of checking gauge is not overrated.
Let’s be completely honest here. Not everyone always checks gauge; some take their chances. It may not be necessary when projects are measured in inches or centimeters. When making items such as scarves, blankets, shrugs, or throws, the gauge doesn’t need to be spot on. If a scarf is a couple of inches too wide or two long, it most likely won’t matter. If a blanket isn't just right, you can always add a little more or take a little out.
When a swatch is done, it can always be pulled out and reused. Save swatches as they are made, and sew four of them together to make an excellent potholder (if you are using cotton yarn). Or, set sights on a larger project and make a throw, a blanket, or a funky scarf. Be creative, but remember this simple rule: if eyeballing the creation is close enough, then feel free to take a chance. But, when in doubt, knit it out.
Much more information can be found at Knit Swatch Tips and Tricks.