Ds can still wear most of his school clothes from last year and they are still in good shape, except for jeans, he blew out the knees. He has school clothes and play clothes, so that helps with extending their life. I got him new socks and undershirts and went to Old Navy and got him a pair of jeans and a couple long sleeved t's. My mom also bought him a couple pairs of pants and a shirt at her local consignment shop. At some point, we're going to need sneakers, but he's good for now.
I still get hand me downs for dd (plus she's not even in preschool yet) but I went through her stored clothes and found a number of really good shoes I had saved that are now her size. I got her a few long sleeved t's at Old Navy, too. Even though I appreciate all the hand me downs we get from friends, I'm finding many are not my style as she gets older and she doesn't wear many of them. I have made her a few shorter pillow case dresses to wear over jeans and a long sleeve t. She loves them because they are "pretty dresses" and I like that it's cute, simple and practical. (and she looks like she's wearing a pinafore which I think is adorable!)