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We use the public library, and also the school library. Our school also has a subscription to RAZkids which we can use at home for online reading. There is also a local shop that does regular used book sales where they sell books for like 50 cents each or something. Our school also organizes book swaps so kids can exchange for books they haven't read yet.
The Goodwill stores in my area are currently selling adult hardbacks for fifty cents apiece. Children's books and paperbacks are even less. I am not sure if this is the going rate everywhere, but it's worth looking into.
Most public libraries will have booklists of age-appropriate titles for children, as well as books for parents on selecting good books for children. And you can't beat the cost and the selection - you only need to invest time and a little travel to get to the library, and the value is immeasurable.
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