As an alternative to fancy and very fancy clothes, there should also be categories for “tacky” and “rustic” clothes and traits to take advantage of them. Wearing clothing from other categories should subtract from morale if you have the wrong trait so people with the “stylish” trait gain morale for wearing fancy clothes and lose morale for wearing tacky or rustic clothes; people with the “vulgar” trait gain morale for wearing tacky clothes and lose morale for wearing fancy or rustic clothes; and people with the “primitivist” trait gain morale from wearing rustic clothes and lose morale for wearing fancy or tacky clothes.
Examples of tacky clothes would be: bowling shoes, clown suits, fursuits, polka-dot shirts, checkered pants, (non-fancy) sunglasses, and so on.
Examples of rustic clothes would be: straw hats, overalls, rubber boots, work shirts, flannel everything, and so on.