I have seperate areas. I think it helps with cleanup, keeping them focused on what they are working on, turn taking, and cuts down on the chaos. The kids also like to be closed in (like in the block area) so the babies dont mess up what they are doing.

I am pretty flxible though...they like to take the babies to the book area, cook with "blocks" as food, that sort of thing. Everything has its place, so clean up is easier.

I don;t mind pushing things up against the wall either, when we do need some more open space for certain activities.

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