Now, I know some of you don't like the idea of shopping second hand. However, my thought process is that I have a two year old little boy. He grows out of clothes so fast, and stains more than half of them. I just can't bring myself to pay for brand new clothes when I know he will just ruin them. Sure, he has some nice clothes he only wears on special occasion that I paid full price for, but for most day to day outfits, I shop second hand.
My store of choice, Once Upon a Child. Today they had a 70% off sale on all of their Red Tag Items. I scored 38 shirts and 16 shorts. The retail value was $213. I paid... $64!!! That would be the price of 6-7 clothing sets at a department store. I must say, I wanted to do a little dance.
Stores like Once Upon a Child are popping up all around. Kid to Kid, Children's Orchard, Plato's Closet (for older kids/teens), Back by Popular Demand.
Most stores buy and sell gently used kids stuff: Clothes, Strollers, Shoes, Toys. I sold them some of Aiden's old clothes on several occasions. They don't pay all that much, but it's enough to cover some new (second hand) clothes. If you haven't been in one of these stores, just check it out and see how you like it.
Note that a lot of these stores (especially OUAC) thoroughly checks each piece of clothing before they buy it. So there are no stains, rips, holes, etc.