So instead we have a small child's table and chairs, bookcase and a few wall hangings in our dining room next to our kitchen table. It's not as glamorous as I had hoped, but it is functional, budget-conscious and, yes, the kids learn perfectly fine. ;)
On the far left we have our Morning Board where the kids begin each day. To the right of that my husband put up a white board where I can quickly and easily demonstrate a concept to the kids. (Or, you know, let them draw for a good half hour...)
I also use the white board to display the vowel cards I made for use with the reading program (The Ordinary Parent's Guide to Teaching Reading) I'm doing with my kindergartner. You can buy the cards but it's so much easier and cheaper to just DIY-it and come up with a reason to break out the laminating machine.
Below that I have a bulletin board for religious education and our address/phone number sheet. This is also where I display the 1-100 number chart.
This map (from Costco, of course) is one of my favorite parts of the whole set up. The kids are fascinated with it!
Finally, tucked away under our bar counter: