What a lovely project! I love the idea of the paper bag albums, they are fun and not expensive to make. They also have chipboard albums sometimes in the dollar bins in Michaels and other craft stores. Those can be covered with lovely papers and pictures and journaling can be added. Another fun thing you could add to whatever albums you use, manila tags can be decorated and used for journaling. They are not expensive and can be very personalized.
What you are doing is so inspiring. If you need paper or anything, let me know and I will send you some.