> When they're no longer nice I wear them around the house.
> When they get holes or stains in them I wear them to do yard work.
Well that's if you have a yard and have space to store old clothes. I think most people (at least young people) live in small apartments and can't afford that.
And I used "yard work" as code for "any kind of work that would ruin nice clothes" but I think that you can visualize non wealthy people who live in semi rural or rural areas.
Also, if I didn't have the space to store old clothes, which can be a $5 plastic box in a closet, they would go in the garbage bin, not to the goodwill, because like I said before I stop wearing my clothes when they've become too worn to give away.
There's all the t-shirts that get handed out at work or volunteering that are required to wear at a specific event. College students at some universities get a lot of these, but don't have much space to store them.
There's gifts from well-meaning family members that don't fit or are totally inappropriate (clothes for the wrong gender, fancy clothes that have to be dry-cleaned and don't follow the work dress code).
There's clothes that used to fit but don't any more (again, basically everything teenagers and young adults own). There's clothes that were required for one job and aren't for a new one, especially clothes that would have to be dry-cleaned.