7 Ways to Save on Back to School Clothes

Aug. 9, 2010— -- You've seen the signs and the sales -- the back-to-school rush is on. According to the National Retail Federation, this year the average American family will spend $600 on clothes, shoes, supplies and electronics.

What can your family do to keep from breaking the bank? Yahoo! Finance columnist Laura Rowley shares tips and tricks to cut costs.

1. Shop in Your Closet First

Before heading to the mall, Rowley says families should do their homework and go shopping in their kids' closets. That way you'll know exactly what's needed before you spend a penny.

"Do an inventory of the closet and decide on five or six, or maybe seven basic pieces that will be the foundation of the wardrobe," she said.

Then, get creative and help your kids put together new outfits based on clothes they already own. You can also take snapshots to remind your kids of these new options in their wardrobe.

2. Arrange a Clothing Swap

To inject fresh items into your kids' wardrobes without hitting the stores, Rowley suggests arranging a clothing swap with other families. Kids get clothes that feel like new, and you don't have to spend a dime.

3. Extend the Season

To save more money, Rowley also says don't give up on summer just yet. A lot of what kids wear -- like a cute summer dress -- can be used for fall just by adding leggings and a sweater.

4. Accessorize

When it comes to kids' clothes, Rowley says accessories are key.

"You can take some basics from your wardrobe and kind of freshen it up, and it's $10," she said, "rather than spending 40 or 50 on a whole brand-new outfit."

A scarf, belt, jewelry or jacket can transform an outfit and make it trendy and new.