i use business card holders to store small pieces of papers like bob's dress shirt tag (i can never remember the size) and little notes like this one from the little princess.
in each of the pockets of the kids category i have their immunization record, birth certificate, etc.
in the family and friends category, i keep announcements and notes that i don't want to lose.
in the kids section, i put the papers from that school year, such as, report cards, awards, notes, drawings, pictures, etc. and at the end of the year i transfer it into it's own folder. since i can't keep up with the scrapbooks, this is the next best thing. this is the little princess's preschool folder. i also keep calendars, phone lists, etc. in there for easy access and so i don't lose it.
i also got this wall hanging quilted for my cousin.