The best plan is to always write kids names on the inside of their belongings. Displaying the name on the outside could be an invitation for trouble, should your child assume an unfamiliar person knows him/her just because this person calls him/her by name.
This is more of a safety tip than a thrifty tip! With back to school, here, don't label your child's belongings with his name where strangers can see it. Put his name inside his things. If a small child is addressed by name by a stranger, the stranger seems "known" to the child.
