Sackcloth and ashes, d@mnit! Everyone should wear rags! Equality! Shiver in the cold!
There have always been people who had nicer or rougher clothes. Nicer or clunkier cars (or no car at all). Nicer shoes, whatever. Insulating the little darlings from such realities will only mean they get smacked in the face with it when they matriculate, or, if they watch the telly, they'll know that this is BS.
Are cheap jewelry (watches and the like) and bad haircuts next on the mandate list?