One of the things I've started doing whenever I hit a thrift store is look for fabrics that might make suitable clothing. Flannel and cotton sheets (in acceptable colors and patterns, of course) are excellent choices. I recently also found some small fleece lap blankets that will make warm dresses or slacks in a pinch. I'm a pretty lousy seamstress (compounded by the fact that I hate sewing) but I can sew if I have to. And with growing kids, I may have to.
Here I've washed some fabrics and hung them to dry.
But take a gander at this find! This is a pure wool blanket, probably about 75 years old or older. I know this because it's nearly identical to a solid wool blanket I inherited from my grandparents, and that they received when they were married. I found it at Goodwill for - drum roll please - $12.50. When I showed the blanket to my father, he nearly jumped because it so closely resembles the blankets he grew up with.