Controlling clutter with kids is not an easy task! To try to control the clutter in the living room, kitchen and dining room, we have to do a walk-through everyday (or at least every other day:).
The kids each have their own basket that they carry around with them and pick up anything that belongs to them and put it in the appropriate place. They are getting pretty good at this because they have learned that the alternative would be mom picking up their belongings and placing them in the toy jail. The toy jail is a sad and lonely place where toys go and have to stay for a while until they have served their sentence or until a fine can be paid by doing extra work or chores.
Source: I got the toy jail idea from: Love and Logic Magic for Early Childhood: Practical Parenting from Birth to Six Years by Jim Fay and Charles Fay. The Love and Logic series is an excellent parenting resource!
Related: 
Getting Rid of Clutter
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