My kids play hard. They explore and create. They get dirty. It is important that they have clothing that is suitable for this kind of use, and some that is also presentable enough to go out in public. It is also important to me that they be able to help put their laundry away, and easily pick the appropriate clothing when getting dressed.
When Kellen (almost 9) was just learning to dress himself, we came up with a system for play clothes and bye bye clothes. We've been using it ever since with all the kids, as they are able to start to helping with laundry and getting dressed; around three.
Clothing that is ripped, stained or otherwise not presentable, or that I just don't like that much becomes play clothes. Play clothes go in the drawers where the child can reach. Underwear, socks, and pajamas also go in the drawers. Bye Bye clothes are hung in the closet.
I still fold all the laundry. (hmmm Kellen is probably getting old enough to help with that!) I fold the play clothes into piles by what drawer they go in. All Lydia's (5) shirts in one pile, her shorts in another, and the same for each kid. Bye Bye clothes I drape on the back of the chair until I'm done folding.
Kellen and Lydia put all their clothes in their drawers. Nolan (3) sometimes puts his away too. Now, after they put the clothes away, I often wonder why I even bothered folding any of them, but we are working on that. I don't make a big fuss about it though. After all, they are play clothes, does it really matter if they get wadded up in the drawer? I hang up the bye bye clothes. (Another thing Kellen could probably start doing. Poor kid is going to get lots more jobs after this post! LOL)
Then in the morning, when it is time to get dressed, they ask me if we are going somewhere or not, and then can pick the appropriate clothing and get dressed. Play clothes don't always match. I'm ok with that. Lydia needs reminding that we don't wear our fanciest dresses to go to the grocery store. She is learning. Nolan still needs help getting his shirts on. And well, Vivian(1) still needs me to do everything. Hey, I didn't say it was a miracle system, but keeping play clothes in the drawers, and bye bye clothes in the closet is a system that works for me.