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On the first day of Christmas, my true love said to me, “Honey, the kids are tired of their new toys already.”

If your kids go through toys as fast as they tunnel through a box of sugar cereal, you’ve got trouble. Toys today are no five-and-dime venture; they are part of a multimillion-dollar industry that uses expensive advertisements to activate the fickle id in every kid.

This holiday season, consider buying discounted or used toys to stretch your gift-giving budget. Then, when your kids tire of the toys, donate or sell them back to resale shops.

“I was a single parent with two kids. Every year, I bought $50 worth of new toys for them; not necessarily the best ones, but new nonetheless,” says Vanessa Tubbs, now a Salvation Army thrift store employee. “If I had known about the thrift store then, I could have gotten a lot more toys for my $50.”

Are they good toys, in good condition? “Because our inventory fluctuates-depending on who brings in what-and our turnover is very rapid, we carry a cross-section of toys from a variety of stores and catalogs,” says Debra Gary, owner of the consignment shop First Seconds Resale in Chicago. “You’d have to go to a lot of different places to find the toys that are under one roof here, including some discontinued toys.

“For the most part,” she says, “everything in resale stores is in excellent condition, with all its pieces, and in an orderly arrangement on the shelves. In non-profit stores, where the items have been donated, like the Salvation Army, there are some excellent items, but you have to sort and sift through a lot of junk to find them. Then again, their prices are lower.”

Isn’t there a certain stigma associated with buying discounted toys?

“I don’t see why anyone should find it humiliating to buy a $20 toy for $10,” says Marvin Hecht, owner of Cut Rate Toys in Chicago. “I suppose if they’ve won the lottery they don’t care about money, but most people would rather buy something for less.”

“Kids don’t know the difference. As long as the toys are in good shape, kids don’t care if they were purchased at retail or resale. Once the wrapping paper is off, the same pieces are there,” says Linda Rush, member of the Du Page County chapter of Formerly Employed Mothers At the Leading Edge, a support and advocacy group that holds a biannual used toy and clothing sale in Wheaton.

“Look at it as recycling,” suggests Margaret Sundlof, owner of Hand Me Downs in Evanston. “Since kids outgrow toys so quickly, passing them along to another family makes more sense than keeping them in the attic. If you buy a $10 toy for $3 and sell it back to them for $2.50 a month later, it’s a lot like renting that toy. It just makes sense.”

Says Romolo Giudice, an administrator at the Salvation Army: “You can use the savings to buy an occasional expensive item. You gotta buy something new once in a while, just to feel good.”

Here’s a sampling of where to turn for help:

– Funcoland buys and sells previously used video games and systems, including Sega, Sega CD, Nintendo, Super Nintendo, Gameboy, Gamegear and Neo-Geo. Prices are based on supply and demand, but are always below retail, ranging from 50 cents for an old game to $300 for a $700 system. Kids are encouraged to try the products in the store before purchasing them. There are 30 locations in Chicago. Call 708-647-8114.

– Cut Rate Toys and Devon Toys sell strictly unused merchandise, purchased directly from manufacturers. This is where you’ll find everything that your kids are seeing on television. Prices are 10 to 80 percent off retail, depending on how popular the toy is. Both stores offer weekly bargain specials. Cut Rate Toys, which offers rainchecks, is at 5409 W. Devon Ave. Call 312-763-5470. Devon Toys is at 2424 W. Devon Ave. Call 312-973-0194.

– Non-profit thrift stores run by Salvation Army (312-477-1300), Goodwill (312-927-8899), Unique (312-842-8123) and Children’s Memorial Hospital (312-281-3474) sell previously owned and donated toys. Prices are rock bottom-at least 50 percent off retail, depending on their condition-but selection varies from day to day.

– Stores that sell used toys include The Second Child, 954 W. Armitage Ave., 312-883-0880; Hand Me Downs, 2609 Broadway Ave., Evanston, 708-475-0803; Mother’s Exchange Inc., 3248 N. Pulaski Rd., 312-725-3545; Children’s Attic, 709 Washington St., Evanston, 708-869-6222; First Seconds Resale, 4266 N. Milwaukee Ave., 312-777-2200; Kiddie Go Round, 3350 W. Bryn Mawr Ave., 312-539-4448; Reruns for Wee Ones, 7112 W. Archer Ave., 312-586-0086; Top Drawer Resale, 6681 N. Northwest Hwy., 312-763-1675; Hey Diddle Diddle, 139 N. Northwest Hwy., Park Ridge, 708-518-0932; and Bearly Used, 401 W. Linden Ave., Wilmette, 708-256-8700.

The toys, ranging from rattles and books to dolls and video games, make up 20 to 50 percent of the merchandise in these stores. They are sold at half of their original retail price. Consigners receive half of the profits. These stores usually don’t accept returns, unless the toys are defective.

– Formerly Employed Mothers At the Leading Edge’s next toy and clothing sale is March 19 in the Science Building at the Du Page County Fairgrounds, on Manchester Road, East of County Farm Road, in Wheaton. Anyone can participate; sellers determine their own prices and keep 70 percent of their profits. “The prices are higher than a garage sale but lower than a resale shop,” says Rush. Call 708-971-2590.

– If you’re not giving it as a gift, why buy a toy when you can borrow one? Three dozen area libraries, schools, day-care centers and hospitals will let you borrow toys free, for up to one week. Several collections range into the thousands, and they accept donations. For the closest location, send a self-addressed, stamped envelope to USA Toy Library Association, 2530 Crawford Ave., Suite 111, Evanston, Ill. 60201.

Before bringing previously owned playthings into your home, inspect them for cleanliness and safety, advises Mary Sinker, toy expert at Kohl Children’s Museum in Wilmette.

“Clean them. Check for cracks, sharp edges or nicks. Ask whether the store monitors and weeds out defective toys that have been recalled by their manufacturer,” Sinker says.

Just as adults don’t read the same book or watch the same movie again and again, children do need new toys every once in a while. But according to Sinker, certain toys tend to stick around longer, saving money over time.

“Building blocks, little nesting cups. The simpler the toy, the more complex the play possibilities are for it,” she says. “The more the toy does the playing for the child, the less long-term appeal it has.”

If you want a toy to last, buy one that fits your child’s needs. “Think about who your child is, not who you want your child to be,” suggests Sinker. “For example, a child who is very physically active probably won’t enjoy a puzzle.” A list of toys that encourage specific motor skills at different ages is available at the museum, 165 Green Bay Rd., Wilmette.

But the best way to increase a toy’s shelf life, Sinker says, is to “join in the play with your child. So flash back to when you were a kid, and buy some toys that still excite you.”