How do I organize children's books when the collection keeps growing?

A small or medium size bookshelf or a shelf in their closet or toy storage area is good.

Make the system easy for the people who actually use it: visible categories, reachable storage and a clear place for each item to return. For younger children, a picture label can work better than a written one.

Decide what deserves space based on actual use, condition, meaning and the room you have—not just what it originally cost. Give anything leaving the house a specific next destination and a date to move it along.