It’s your choice, but just be consistent. It’s always nice if a child can keep some of their own things in their own box or bin, but you don’t need to try to keep all of each kids' toys separate.
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.
My final check is practical: can you find what you need quickly, put it back just as easily, and see when the space is getting full? If not, simplify the categories or move the storage closer to where you use it. An organizing system should make life easier, not become another chore.
Mr. Organized's Answer