I took these ideas from ehow.com, so if they don’t work, blame them!
In the bathroom: Purchase items like toothbrushes, towels, and robes in the appropriate colors. This will help keep items from getting mixed up and smaller kids will be able to easily know which item belongs to them. It will also help you know at a glance who left their towel on the floor or their toothbrush on the counter.
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In the laundry room: Use laundry baskets that are different colors so that you can easily sort out whose clothes are whose and then make it easier to put them away after they are folded in the correct dresser or closet.
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In the bedroom: You can use a permanent marker in the appropriate colors and mark items such as toys and books so that children will know which item belongs to whom. This should cut down on the fighting over items in your house when there is less confusion. You can give each child a plastic tub that is in her color and let her use it as her “special treasure box.” If your children share a closet and you want a way to keep their clothes separated you can use colored hangers so that they know at a glance which outfits will fit them properly. You can even paint or make a mark on the drawers so that children will know which drawer will have their jammies and not their brother’s.
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In the kitchen: You can purchase dishware in the appropriate colors so that children are not fighting over special cups and bowls. Again this will cut down on fighting, and you will be able to tell at a glance who did not carry their plates to the sink.
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At holidays: At Christmas time you can color code packages by using the children’s chosen colors of wrapping paper or ribbons so that they can tell at a glance whose package is whose. You can also do this with Easter baskets, Halloween bags, and Valentine’s Day gifts.
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School supplies or bags: Purchase your children’s backpacks, lunchboxes, pencil boxes, notebooks, diaper bags, etc., in the child’s chosen color so that you will be able to easily identify them and put them with the correct child at the correct time.
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Hallway or mud room: Paint coat hooks and hang them up on the wall for each child to hang up their coats and backpacks. This way each child knows the proper place to put his stuff.
Read more: How to Color Code Life with Kids | eHow.com http://www.ehow.com/how_2278171_color-code-life-kids.html#ixzz2Oleb7iOT