I get the budgies out a lot. I keep a few napkins with me because of droppings. Typical things.

Well Sam seems to think they're food because every time I turn around, she's sitting over there nibbling on the edges of a napkin. I'm not sure if she's actually eaten any of them, but she has tore bits of it, so I think she possibly has.

Would it be dangerous if she ingested it? I've heard about ingesting fabrics (from rope toys and blankets) can mess something in their body up and cause death, but what about paper? I do stop her, but I want to know if it's dangerous?

All birds chew on paper or napkins or paper towel or the newspaper or products we put in the bottom of their cages. I have never seen a bird ingest paper products but I can imagine if they did swallow a bunch of it that it might not be good for them.

I'd keep it hidden away from the budgie.

Ok.

I was making sure she didn't eat something she shouldn't have.

Budgies and other birds are pretty smart and usually don't eat what they shouldn't, they are expert paper rippers as its material they use when making nests and its something they like to play with as well.

I use to give my birds a roll of paper you put in a adding machine, they loved to unroll it and chomp and tear it up. As they got older they didn't bother with it much anymore.

I'd honestly enjoy watching a bird shred paper

Give them some clean white paper to rip up see if they enjoy it.

I'll probably try that later

Budgies love to shred things. I've even had them chew my aviary wood! Just curiosity and playfulness