Re: Keep the clothes or give for consignment?
If you don't want to give the clothes away then don't. It can be helpful to some, but not everyone will use hand me downs.
If I have a child that will soon fit in clothes I keep it. If I don't then I only hang on to a couple items, "special" pieces or especially awesome vintage items
Personally I don't like having boxes of clothes filling up the closets, and I don't like having dressers full to a point that I can't keep them organized. So I try to keep clothes to a minimum.