I had decent stuff without holes/stains, but it was almost always hand-me-downs from someone at church. We typically got a new Easter dress/white shoes and a new Christmas dress/black shoes from a local dept store, but it was not name brand or expensive and that's what we wore to church the entire season. We also got a new pair of jeans and a top and shoes for the first day of school, again, not name brand, but usually from sky city or a kmart type place. I grew up in the rural south, born in the 70s. I wanted trendy stuff, but it just was not in our budget, nor was it available in our rural area.
I've 4 daughters and always dress them nicely, inexpensively. Consignment and thrift is where most of our name brand stuff comes from, but I will supplement with sale stuff at dept stores as needed. I go for quality over quantity and our stuff last forever. My kids love thrifting with me! If they've asked for something more expensive than I usually buy, they either pay part of it themselves, or it becomes a Christmas or bday gift. For example, none of my girls have had real uggs, but they've all had a Northface jacket at some point, bought on clearance. They love American Eagle jeans and I'll kick in $20/pair and they have to figure out how to pay for the rest of the cost. They've gotten really good at checking the sales and getting the most for their money. They also only have 3 or 4 pair that will last them quite a few years.