T.,
We got a small table that came with two chairs and it has had a TON of use. The kids sit there to read and play with their blocks, legos, tea set, etc. We try not to keep too many toys in the kids room, but if you don't have a playroom, a toy box would come in handy. We keep plastic containers of things under the kids beds and on shelves in the closets to avoid using a toy box. I like having a bookshelf in there so that the kids have a place to keep all their books. A bean bag is another nice idea for a reading corner.
My best advice is not to put a lot of money into furniture at this age. The kids are going to tear it up. It is just how kids are - they are hard on everything. We have picked up furniture from discount clearance places and I am SO glad. When they are older (preteen) we will buy them a nice furniture set, but for now it doesn't make sense. They only do a few minutes of homework a night and so that is done at the kitchen table.
In my girls' room, I bought a cheap white dresser and a cubicle storage/bookshelf and picked up wall stickers and decorated them with it. I also changed out the knobs for ones with butterflies, etc. It was a little over $100 for all of it and it holds all their clothes, books, puzzles and a few toys.
Good luck and congrats on #2,
S.