I have a similar binder I LOVE and it helps keep my sanity and my household run smoothly I know where every document I need is and in an emergency I can just grab it instead of paying hundreds of dollars to replace vital documents and other items. I once figured it out and to replace our SS cards & birth certificates alone would cost me over $200!!!
A box for each kid K-12 ... I had a professional organizer at my house (what a treat!) and she suggested this system for pictures and papers, etc. 1st year, 1-2, 2-3, 3-4, pre-K, K, 1st grade - 12th. So simple, but so brillant.