Here is the first idea for how to save school pictures for your kids. This idea is more a long the lines of how to display the yearly pictures so that you can see how your children have changed from year to year. I have seen in the past, several picture frames made to hold a photo from every year a student is in school. At my scrapbooking retreat, I was introduced to a fun scrapbook page that was made to hold smaller photos. The openings are square, so you can use a Exchange size pictures and place a fun piece of scrapbook paper behind it or trim down the 2 1/2 x 3 1/2 images to display more of a close up. The great thing about this idea is that you have more options for the frame as you can use any 12×12 frame. Also, you can easily slide this page into a scrapbook if you decide the time has come to take down school pictures (insert tiny tear here as you reflect on sweet childhood days).
This page can be located at a specialty scrapbook store. I purchased mine from Scrapbook-N-Memories.