I have a big plastic tub that I'm keeping special blankets (were handmade), clothing that were given by family members for baby presents and Christmas presents. I'm only keeping special clothing (really cute outfits that family members have bought, if they are handmade, like a crocheted sweater that was my brothers, also we are big UK fans, so I'm keeping all the UK outfits and Aggie outfits). I'm keeping all his drawings and all things he makes at Sunday School/Preschool. I have a neat personalized folder to put it in. Later on down the road, I may take pictures of it and put it in a scrapbook or in a box, instead of keeping it all. As over the years the pile of drawings will increase and keep increasing and we won't space for it all. Toys, I'm keeping some special rattles, that were mine and maybe a few special toys. I'm not planning on keeping all of his toys, our house isn't big enough and I don't want to take up all the attic to store all his toys! I am keeping children's books as they can be handed down to your grandchildren and their children, etc... stuffed animals, I'll definitely keep 3-5 that were really special for my child that he paid attention to the most.
My Grandmother stored her clothes and things in an old chest in her basement. I would wrap them in tissue paper or some type of protective covers. My Grandmother had her silk wedding dress stored in a box wrapped in blue tissue paper and it held up so well. The bugs didn't get to it and there were no stains on it. I was so glad she preserved it and I was able to use it for the trim of my dress.
My child is 2 years old, so I deal with it each year in the fall. I've sold some things to Just Between Friends Consingment Sales and donated things to friends, church and United Community Centers where other kids can benefit. There is Just Between Friends sales coming up in Sept so check out there website www.jbfsale.com You might consider selling some things or handing them down to other members in your family. You could donate things to your church or community centers or shelters.
My Mom saved some of my fancy/nice clothes, some of toys, barbies, clothes for the barbies, pillows, quilts, halloween costumes. I'm glad she saved these things, as we've been able to use some of these things with my child and some of the foster kids that we've had in our home. Some of Barbies didn't survive the heat in Mom's attic. So, when I got them their arms/legs fell off, where the glue wore off. So, they died and I pitched them. If you have dolls and want to save them and preserve them, I would talk to a Doll Specialist or someone who could advise on how to preserve your doll (Antique Dealer or someone who fixes dolls). Some clothing you can get the long plastic bags that hang on closet rods that should do well just like that for many years. I would try Container Store, maybe they could advise you on how specifically to store clothing, toys, dolls,etc... There might even be some books at the library to help on this topic. You could try searching the internet also.
Overall, I'm keeping things that are really special to me or to my child/husband. Yes, you can keep everything, however you may not have room for everything unless you have a very large house!! I am a packrat, however I'm working on organizing our home and getting rid of some things too.
I have our Son's big red tub in his closet, it isn't in the way, as it sits under a shelf. In a year a two, I might want to move it to the attic or garage or somewhere else. We have our garage filled with boxes, stuff we need to sort thru. We have lots of storage space here at our house with closets, attic, garage. You might want to set a limit 10-15 items for each child or each person and that might help you set some guidelines for everyone. I would keep the things that have special memories for you or your children/family, family heirlooms, monogrammed things, handmade things. Hope this helps you.