In the meantime, here's a brief explanation and picture from the Wikipedia. (Cay has much better pictures with her children :)
The "Schultüte" (or in English The School Cone [even though the word "Tüte" translates more as bag]; alternative spelling: Schultuete) is a paper (and later plastic) bag in particular.
When children in Germany set off for their first day in school upon entering grade, their parents and/or grandparents present them with a big cardboard cone, prettily decorated and filled with toys, chocolate, candies, school supplies, and various other goodies. It is given to children to make this anxiously awaited first day of school a little bit sweeter. (For more on this follow the LINK).