It is a German tradition for children consisting of a large cone that is filled with candy and toys for a child's first day of school.
The word "Schultüte" is pronounced as SHOOL-too-teh. The emphasis is on the first syllable, and the "ü" is pronounced like the "i" in the English word "sir."
Hi, the cost for materials to make one is minimal as it is only a sheet of strong paper or thin cardboard for the body and some stickers / pictures etc. + paint on the outside. If you are a little creative you could use pictures from magazines etc. for nothing. There are no set rules about the content of it - it could be sweets only something useful for school (pencils, paper, a watch, a box for the sandwich for the break etc. etc.). At that age children are not competitive to show off to their mates what they got in theirs.