This is how the toys look in our apartment. I bought the white cubby thing at Target along with the fabric boxes. At the time this system worked perfectly, but a birthday and Christmas later and it's busting at the seams. In a couple weeks we'll be out of here and it won't matter, but lately I've been thinking of how to arrange toys in an organized way. I've been reading about toys in the Montessori philosophy, where toys are basically adult household items brought down to size. Every room has a toy area, usually a low shelf on a bookshelf, with boxes labeled. That would be ideal, and I would avoid the what seems inevitable toys strewn all over the floor in every room of the house. Someday though, it will look like this.