I purchased a fire-proof box for myself and each of my five children.
I added dividers to each. My kids have 18 dividers: ages 0-5 and then I switched to grades (K-12). I added about 15 to mine and labeled by year. This part takes a moment, especially if you have a lot of kids, so put on a good podcast or pray over your people as you work.
I have a basket I collect all kinds of papers in- photos, favorite works of art, letters I write to each child on their birthdays, special cards we received in the mail, etc. When in doubt, I toss an item in the basket. This isn't the time to sort.
For my own box, I especially love to include my Bible study and prayer pages I've filled out over the years. What a faith-building process to look back over these journal pages! I'll do the same for my kids as they age.
About once a quarter, I pull out all the boxes (stored in their closets) and sort through the catch-all basket. Some items get tossed once I see that they aren't worth saving. Others go into the proper box, behind the correct divider.
Once the dividers are made, this process is really quick and manageable. It keeps us organized, and also responsible to only keep what is actually important.
Tip: I take a picture of beloved items (toys, outfits, etc) and then donate the actual item when it's no longer needed. It saves on space! The exception to this is a copy of each child's favorite childhood book.
My kids love to go through their past folders, which they can do because it's organized and easy to access.
That's it! Enjoy, friends.