Kids clothes can get expensive.
Especially when they are really young and growing like weeds or if they happen to be going through a growth spurt. And then you need clothes for the changing seasons, which often don't fit for more than a year.
Buy clothes for next year at the end of the season.
At the end of the season they go on clearance for 70 - 90% off. Sometimes it's hard to anticipate the right size, trying to guess the size my unborn child was going to be at 10 months was difficult. And I underestimated at size 18 months (yeah he's 25 lbs).
But its easier guessing for older children. And if you buy at stores like Carter's they let you return items a full year later if you have the receipt. Which is nice because you are not out of pocket if you happen to buy the wrong size.
And secondly you can buy used.
A lot of my girlfriends found cute clothes at garage sales. Although I never seem to make it out of the house with two kids that early in the morning. And my mom has bought a lot of kids clothes from her church rummage sale.
But I have bought a lot of my kids clothes and shoes from used kids clothing stores like Once Upon a Child. You can check if you have a similar one in the area. And once or twice a year they have a clearance sale where you can put whatever you can fit into a grocery bag for $15 (used to be $10). Make sure you join their mailing list so you know in advance when the sales are.
Once Upon a Child also buys kids clothes from people for a nominal amount and they give you more if you choose a store credit.
There are also general used stores like Salvation Army, Goodwill or Valu Village. I find you have to go fairly frequently to find good new looking clothes but sometimes you can find brand names for super good prices.
And ideally you can get hand me downs from a friend or relative.