No, you don't need to buy more containers to organize the kids' stuff. You just need to drink more milk. We really like this idea of re-using milk jugs we found over at Craftzine.
Save your half-gallon milk jugs, wash and rinse, and cut a large opening under the handle. It's the perfect way to lay out craft supplies like the color pencils shown here, chalk, markers, or crayons. The handle makes for easy toting.
Around my house we use recycled items such as clementine orange crates, glass jelly jars, and ice cube trays for craft supply storage. Any other good recycled ideas to share?
Image: Craftzine

White Enamel Flatwa...
I know reusing stuff like this is all eco-friendly and what not, but I just end up feeling like I have a house full of TRASH when we do this kind of thing. Same thing when we "make your own" anything. Lasts about a week before I can't stand it anymore.
Oh my gosh, I LOVE this! I am going to use them in my classroom to organize materials.
Thank you, thank you, thank you for giving me this idea. Containers are more expensive than most people think, and have a tendency to get messed up when they're being used frequently by 8-year-olds. You have just saved me a lot of money, Janie. Thanks a million!
Also, there's some great ideas about how you can use recycled materials for crafts that will keep your kid engaged for hours if you follow the link below.
http://tandemteaching.com/guaranteed-boredom-buster-build-an-exploratorium/
I love recycled plastic peanut butter jars craft supply storage. And plastic parm cheese jars are great for glitter, beads, etc. with their flip lids. I use styro egg cartons for paint projects. But I appreciate mammapajama's perspective. I have a couple of boxes of tp rolls, plastic fruit cups, and yogurt containers - they do clutter the craft room, but I'm a pack rat by nature, so I'm afraid I'm hopeless!
These are so great! So handy to carry around with you, kids love that!
http://www.notyourgoddess.blogspot.com/
Mamapajama- me too. I've tried these solutions and end up feeling the same.
I'd rather just get a couple of cheap, uniform containers that'll do the same trick.
But I would definitely do this in my elementary school classroom!
This is a neat idea for a kid party or when you plan a craft session.
For full disclosure, I have a 650 sq foot house (2 adults, 2 kids, 1 45lb dog), so it's not like I have a "craft room" to put this kind of stuff. Maybe if we didn't have to look at everything we own ALL THE TIME, I might feel differently.