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PS: This is all great for families with a room to spare, but what suggestions do you have for those without a designated playroom?
MS: Most families, including my own, don’t have a designated playroom. Young kids would rather be near their parents while they play anyway, so it works well to have mini play spaces in different areas of the house. That might mean having a bin of toys on wheels, or setting up a play kitchen in a corner of your actual kitchen. If toys are going to be stored in the living room, it's nice to have them concealed in storage that you enjoy looking at. We have two whitewashed wood rolling bins to store toys under our media credenza, and they work well with the rest of our decor. If you store most of your toys in your child's bedroom, keeping it organized makes it easier to put everything away at night so it can still be a restful place.
When it comes to finding a place for arts and crafts, you can almost always find a spot to carve out an art nook. Many of my clients choose to make space in the corner of a room, or they use their dining tables for art and designate a nearby cabinet for the supplies. Another option would be to keep art supplies in a rolling cart, and it can be wheeled to the table whenever you want.