Hanging my kids artwork on curtain rods with rings hooks was an easy solution for my family. You can see some more ideas here...

http://www.no29design.com/2012/04/eye-candy.html

I have two little boys who are generating a ton of art now, too, so I asked this same question of my co-workers last month. Here's the collective solution we came up with: Favorites go on the same Ikea lines that are pictured above for display in their bedrooms or the basement play room. The rest accumulate in a box to which they have free access (because sometimes, they just want to show me that rainbow again).

When the box is full, we take a digital picture of each piece of art, and then select a few pieces to keep (usually those already on display) or to send to the grandparents/aunts/uncles. That way, there's no trauma of throwing something away (since we always have the pictures) AND we get to share with other family members. Occasionally, I'll let the kids cut a discard piece into squares that we paste onto plain notecards. Then the kids use those for their thank yous.

photograph them!

Yeah, scan or photograph them and then make a blurb book!

Don't have a picture, but my friend's rental house has a wall in her kitchen which the owner installed cork, framed it with molding and then painted it the same color as the wall so it blends well with the room. Great for posting pictures, artwork, cards, etc. I am SO doing this when we move into our first home.

A lot of our artwork turns into post cards, greeting cards, notes and other mail. We made a little correspondence kit - basically a tin with stamps, pre-printed address labels and envelopes so we can quickly send some fresh art to family and friends

You could also have a day each season where you go through the latest artwork and have the artist pick their favorites or best work to keep in a book / album / portfolio and then have some options for the rest - recylce / use as wrapping paper / book covers / correspondence / shred for other projects etc....

there is always the photo idea and sheet protectors in binders- always fun.

I toss most pieces in a 'snippet bin'. She uses them for her beloved cut & tape time. THEN we toss them. The inspired art goes on lines in our dining room. And a very few of those go rolled in tubes in our attic.

I like the idea of sprinkling in a photo of keeper art in our annual blurb book.

I live in a very small place. I know there will be years and years of projects and art from my two little kids. So I show it on a door that has a natural frame. Save a bit (tiny bit since we have zero storage) and recycle the rest, weekly.

What is the name of the lines at IKEA? I can't seem to find them online or at the store. Thanks!

I made a framed collage of my daughter's art that turned out well: http://miltonsmanor.blogspot.co.uk/2012/02/charlottes-art.html