There are many options to save money on your clothing bill. In 2005 the average American household spent $1886 on apparel1. In all but the most unique situations this is way more then necessary.
The first question to ask yourself with any type of spending is, "do I even need this". While we do need some clothing often we can just do without new clothes, at least for awhile. Consider forfeiting the "right" look for the sake others that you could help with your money. This can mean different things to different people. If you're typically quite stylish, evaluate how important this really is and whether you are willing to forgo your look even a little. If you're normally casual try going longer and letting your clothes grow shabbier before you replace them.
Once you've determined that you need something, try to look for cheaper ways to get it. Do you have any friends that can give you hand-me-downs for you or your kids? If you frequently visit thrift stores you can find some very nice clothes at good prices and potentially be supporting charity at the same time. Online, try craigslist or ebay for some good deals. If you're in a big city you can often find clothes from within your area and save again on postage.
For the more adventurous, consider trying to sew or knit clothes. This is extremely frugal for children's clothes as their clothing need less fabric or yarn then adult clothes. If you ask around a little people might be willing to give you free fabric or yarn. Also try craigslist or ebay for these things. Most libraries have some great beginner books to start from.