The TSA has enacted a program for identifying proper liquid transport. This program is known as 3-1-1. 3-1-1 is a moniker, used to help travelers remember what is valid, and what is considered breach of security. The moniker 3-1-1 relates to 3 ounces, 1 quart bag, and 1 bag per person, respectively.
The first aspect of the 3-1-1 moniker relates to quantity. Three ounces is the acceptable maximum amount of liquid that may be carried in any given container. Beyond three ounces, and you will be required to throw away whatever the liquid may be. Do not count on an exception being made. Either buy the product at your destination, or find travel-size portions, such as travel toothpaste, or mouthwash. The exact ounce allotment is 3.4 ounces.
The first 1, in the 3-1-1 moniker, relates to a 1 quart plastic zip bag. This is to manage overall quantity of liquids. You may bring all the liquids and gels that fit comfortably within a single, clear plastic, zip bag. The bag must be closed, and TSA security personnel will make the judgment of whether or not it is a comfortable fit. If they feel the bag is crammed too full, they will require you to throw out some articles. This is a preventative measure. It removes the risk of people complying with the 3 ounce rule, but merely compensating by bringing massive amounts of 3 ounce containers on board.
The final 1, in the 3-1-1 moniker, stands for 1 bag per traveler. Each individual traveler is allowed their own clear plastic zip bag. If you have a family of four, that is an allotment of four bags. However, each traveler must be in possession of his own bag. No exceptions. This means that if your family of four is traveling with one suitcase, you are allowed one bag of liquids. The bags must be placed, separate from your luggage, on the security belt to be scanned.
The 3-1-1 moniker relates to carrying on liquids. However, the traditional rules apply when dealing with checked liquids. Liquids put in a bag that is checked, and stowed beneath the airplane, may be of a quantity greater than three ounces, and do not need to be contained in a bag. However, the specific types of liquid are still constrained by TSA regulations. A full list of restricted items may be found on the TSA website.