This is a great idea!
I've done the Rainbow Words for spelling centers! The kids love it!
I'd love to use this but I teach at a school with students from low-socioeconomic backgrounds. Over the last 2 weeks, I've had less than 50% of my students return homework, and when questioned about their homework, the response is "I didn't have pencil and paper and my mother said she didn't have any money". So, I've had to use my own money for pencils, paper and erasers. My first graders this year are very immature and very needy. So this wouldn't work in my class. I'd never get those notebooks back! They'd scribble and doodle on all the pages!
At the beginning of the year, I purchased over 20 vinyl folders w/ 2 pockets and prongs. I created labels for the folders using MSWord. The outside of the folder has their name. On the inside, the left side is labeled "Homework and Notes Home", which includes a weekly homework list for parents. The right side is listed "Graded Papers/Tests". On the prongs are 2 laminated pages of High Frequency Words to be studied every night and a Daily Behavior Chart, which has a calendar for the entire month; in each square I give smiles or frowns for the date and comments for the parents. Students place their materials in the appropriate pocket and they are to be checked every night by parents and returned the next day. This works with students with parents who actually check their kid's folder. But, of course, there are always those who lose their folder, forget it, or just don't complete their homework. For those students who don't turn in their homework, they make it up during recess/specials, and those with lost folders are sent home with a note requesting parents to replace the lost folder.