I use masking tape to label items, writing on it with crayon instead of permanent marker. I have two small children who leave stray crayons everywhere, and a permanent marker is a potential disaster if they get a hold of one. Masking tape is inexpensive compared to purchased labels or label makers. Crayons write smoothly on masking tape, do not smudge or need to dry, and the available color palette is huge.
Each member of the family can have their own color (green for Dad, pink for sister, purple for brother), or similar items can be marked with the same color (all craft supplies labeled with blue writing, kitchen items labeled in orange). This is especially key when packing or organizing for children sharing a room. All of one child's drawers can be labeled with her favorite color and the name of the item that goes there. The tape can be easily peeled when something changes without damaging most surfaces and because these are common household items, making a new label is easy.
When packing or organizing I have a few colors of crayons in my pocket and a roll of masking tape around my wrist like a bangle.
Source: I got this idea when every marker I picked up was either dry or terrible smelling but the crayon I found at hand worked well.
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