Everyone is different on this one! At my house space is the dominating issue. We’re in a small (1200 sq. ft) home with soon to be 9 children. It is essential that we stay on top of how much ‘stuff’ each person has. Bedrooms double as play spaces (3 kids in 1 room, 5 kids in 1 room). So here is what we’ve done:
In the bedroom with 3 kids they share a single dresser for clothing (ages 14, 9, and 2). There is a cubical (9 cube shelving unit with bins) and a set of shelves in the small closet of the room that also holds containers. All toys/craft materials/books must fit in these two spaces – and each child has a designated number of shelves/bins. The 14 year old also has two guitars and a keyboard that fit in the side of the closet.
In the bedroom with 5 kids they share a single taller dresser for clothing (6 drawers). (Kids age 10, 7, 6, 4, 3) They have a 6 cube organizer and a dresser with a drawer for each one to keep their personal toys/treasures. Beyond that they have one bin out from the attic – legos, duplos, wooden trains, etc. Whatever they choose.
So in essence, we managed toys by managing the space allotted to each person. Once their personal items fill the space they have to start culling things out to add something else in. Lids are helpful to giving a finite space definition.