I use a 512MB SanDisk Mini Cruzer, similar to the one shown in the picture above, which holds the equivalent of about 165 floppy disks. This SanDisk version includes software on the USB key drive to encrypt files in case I want to keep things private.
USB key drives come in all shapes and sizes, and with different utility features. The slimer designs are easier to carry in a pocket. Many come with lanyards to wear as a necklace. Some are built-in to pens and there is a Swiss Army knife with a built-in USB drive.
I don't think I will ever wear one around my neck, but I do carry it in my pocket. If you want to learn more about how these work, there is a good WikiPedia at http://en.wikipedia.org/wiki/Flash_drive. PC Magazine has an article on how to use these drives as a portable office. There are lots of possibilities!

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