Back-to-School Budget

Part 2: Tips to keep your budget on track

Families with two kids in school will spend an average of $550 on back-to-school shopping!

When I was a kid, my back-to-school bare necessities consisted of a couple of spiral notebooks, a box of pencils (colored pencils too), magic markers, a ruler and a book bag. My how things have changed… Now, it’s all about laptops, cell phones and zip drives. It’s no wonder the back-to-school shopping list looks like my Christmas list to Santa!

Watch Pam Krueger discuss tips on ABC


Keep your school supplies budget on track with these five tips:

  1. Start Now: Don’t wait until the last minute to start shopping for necessities. According to the Chase Slate – US News Monitor, 55 percent of the parents polled are putting off shopping for back to school until the last minute and 62 percent say they haven’t even established a budget.  If you’ve ever gone into the grocery store without a list you know what happens – - you buy on impulse and wind up overspending, only to realize that once you’re home that you forget to pick up the milk!
  2. Create a realistic list: Save money and reduce the stress of shopping by getting your kids involved in process of coming up with the items on the all-important school shopping list.  After all it’s their stuff, so it has to be their list!  Take a few minutes and together, come up with your list of items. This list gives you an excuse to point out the “need to have” items and “wish I could have” items – - the book bags they really need versus the Juicy Couture jeggings for $50 your daughter says she has to have for first day of school.
  3. Stick to the list: By getting your kids invested in creating the shopping list, you can make them more responsible for sticking only to the items on the list. (Again, it’s THEIR list!). Despite the hype, there’s no need to go over the top with supplies or clothes. If your kids want any special items, try to have them play an active role in looking for coupons or deals on these purchases. Did someone say… teaching moment?
  4. Make and maximize a budget: Parents can introduce their children to the concept of using a budget to ensure they don’t overspend. Show them how you intend to pay off some things while other bigger-ticket purchases, like lap tops, might require a plan over time. The idea is to walk them through the process and yeah, make sure you can pay off the school supplies before the holidays kick in! Once you’ve created their shopping list, just divide the list items into “must have” and “wish list” categories, then evaluate the best options to finance both big ticket and everyday items. In terms of planning, accounting is nothing more than making best guesses, assumptions and using estimates based on what you spent last year. Together with your kids, let them help you take your best guess at what items will really cost. Now you can start talking about how to shop for bargains and clue them into the fact that if you can save on the external hard-drive and the fancy jeans, you can get more.
  5. Shop creatively: Now you have their list in-hand so you have their full attention because they will want to make sure they actually get the goods so now you can get creative with the shopping:  check out Shopkick, a phone app that can lead you discounts at stores like Best Buy and search for the goods you know you need at bulk stores like Costco, garage sales, and on eBay to find bargains on supplies. Just avoid the impulse to buy what’s on display at the retailers.  And don’t forget to “shop” around the house to see what’s left from last year. For parents with extra time, you can even try selling gently used goods, and use any extra cash towards new supplies. Negotiate with your kids on which of their items they can re-use versus buying brand new. Also, work the calendar!  You know the best discounts are going to happen after the kids are already in school so make your first shopping excursions about picking up those necessities and then once the big red clearance signs are up, head out and buy the wish list items at a deep discount.

By involving your kids in every step, you’re helping yourself to save money and teaching your kids some valuable real world lessons that can only help them over the rest of their lives.