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Another way to use up material from old baby clothes is to make stuffed animals. Do you have a favorite t-shirt of your baby's that his or her little arms just don't quite fit right in anymore? Using the material to make a little stuffed bear is a great way to preserve that memory for yourself and pass something very special on to your baby. The same thing can be done, if a hobby persists, with socks and jeans as well. Soon all of your friends will be begging for little stuffed dolls made out of your baby's old clothing.

If you are in fact creatively inclined, another great way to reincarnate your baby's clothes is by creating a memory quilt. Save bits and pieces of your baby's clothing and use it to create a full sized patchwork quilt for when your baby gets their own big bed. That kind of sentimental value also makes a great gift for a graduation or a wedding (if you can wait that long to show off your handy work).

If you're planning on having another child, you have a built in way to get rid of all of the extra clothes. You can put away the clothes that your baby grows out of in a storage area. Just make sure you launder everything when it comes back out for round two. Sure, it stinks to get hand-me-downs, but it is unlikely your infant will notice, let alone care.