Our Back-to-School Financial Tips Guide

Be money-smart before classes start.

As the summer draws to a close and the back-to-school season approaches, many families find themselves grappling with the financial demands of preparing for a new academic year. From school supplies, clothing and uniforms to extracurricular activities and fees, the costs can quickly add up. We understand the importance of managing these expenses efficiently, so we’ve compiled some valuable financial tips to help you get back into the school-season groove without breaking the bank.

1. Create a Back-to-School Budget
   One of the most effective ways to manage back-to-school costs is to visualize all the expenses in a detailed budget. Start by listing all the necessary items and their estimated costs. Here’s a short list to get you started:
   • Basic school supplies (notebooks, pens, calculators, etc.)
   • Clothing and uniforms
   • Technology (laptops, tablets, software)
   • Extracurricular activities (sports, music lessons, etc.)
   • Transportation and on-campus food service costs
   • Textbooks and fees

   Once you have a comprehensive list, divide it into two categories: 1) Hard or fixed costs (things with inflexible prices, like book rental and fees) and 2) Variable cost items, where you have discretion in your spending (line items like clothing, for example). If the two categories exceed your available budget, adjust your variable cost items to stay within your financial means. You might also be able to defer some items to a later date (Shopping for back-to-school clothing a bit later in the season, for example, you can delay the expense and maybe even take advantage of late-season sale prices.)

2. Take Advantage of Sales and Discounts
   Speaking of sales, the back-to-school season is highly competitive for retailers, and you’ll find many opportunities to take advantage of promotional savings and discounts. Many retailers often sell basic school supplies at a loss in hopes of attracting customers for higher-ticket items. During your back-to-school bargain hunting, keep an eye out for:

   

   • Tax-Free Weekends: Many states offer tax-free shopping days, allowing you to purchase school supplies without paying sales tax. This can result in substantial savings.
   • Coupons and Promotions: Look for coupons in newspapers, online, and through store loyalty programs. Combining coupons with sales can maximize your savings.
   • Bulk Purchases: For items like pens, paper, and snacks, buying in bulk can be more cost-effective. Consider teaming up with other parents to take advantage of bulk discounts.
3. Prioritize Needs Over Wants
   It’s easy to get carried away with the latest gadgets and trendy school supplies, but it’s essential to prioritize needs over wants. (Chances are, the very latest phone or tablet that costs hundreds of dollars isn’t going to handle school tasks any better than the older model workhorse you already own, for example.) Focus on purchasing the items that your child truly needs for school. If your budget allows, you can consider buying a few desired items as rewards or incentives.
4. Reuse and Recycle
   Before heading out to buy new supplies, take inventory of what you already have at home. Last year’s leftover notebooks, pens, and binders can often be reused. Additionally, consider recycling and repurposing items such as:

   

   • Electronics: If an older model does the job, save the expense of buying new. Reuse last year’s or look for bargains on older models. Check big box stores for older model closeouts or floor demo units in good condition. Check to see if there’s a university surplus store near you; they have a constant stream of retired electronics at bargain prices that still have plenty of useful life.
   • Backpacks: A sturdy backpack can last several years. Clean and repair it if necessary.
   • Clothing: Hand-me-downs and gently used clothing from older siblings or friends can be a great way to save on new school attire.
5. Plan for Extracurricular Expenses
   Extracurricular activities are an essential part of your child’s development, but they can also be expensive. To manage these costs:
   • Set Monetary Limits: Determine how much you can afford to spend on extracurricular activities each semester. Remember to factor in all expenses, including self-funded travel and the associated expenses, like food and lodging.
   • Explore Community Programs: Local community centers and non-profit organizations often offer affordable or free extra-curricular programs.
   • Seek Scholarships: Many extracurricular programs provide scholarships or financial aid for students who demonstrate need or talent.
   • Participate in Fundraising: Schools are experts at administering fundraising programs to offset extracurricular costs. Take advantage of available fundraising activities and consider taking the lead on organizing fundraisers if your school doesn’t have any planned.
6. Consider Long-Term Educational Savings
   While back-to-school shopping focuses on immediate needs, it’s also a good time to think about long-term educational savings. Think about setting up or contributing to a 529 College Savings Plan. These tax-advantaged accounts can help you save for your child’s future college expenses, reducing the financial burden when the time comes. For more info on college savings, see our main feature story in this month’s edition of SmartTips.
7. Review and Adjust Your Budget Regularly
   As the school year progresses, review your budget regularly to ensure you’re staying on track. Unexpected expenses may arise, so it’s crucial to adjust your budget as needed. Keep receipts and track your spending to identify areas where you can make adjustments if necessary.
8. Teach Financial Responsibility
   Involve your children in the budgeting process to teach them about financial responsibility. Explain the importance of budgeting, saving, and making wise spending decisions. This can help them develop good financial habits that will benefit them in the future.

“Involve your children in the budgeting process to teach them about financial responsibility.”

Start Smart This School Year

Make this school year a financially successful one for your family by creating a budget, bargain shopping, prioritizing needs, and planning for long-term expenses. If you have questions or need advice on long-term educational savings strategies, reach out to our team of experts. We’re here to help.