Back-to-school shopping season is fast approaching, with the average household expected to spend about $875 on back-to-school expenses, the second highest on record.
If cost is a factor, there are opportunities to reduce both the expense and the stress. Here are some of our most helpful tips to help you have a successful first day of school for your child, while still keeping your finances under control.
Set your budget
First, use last year’s back-to-school expenses as a baseline and spending limit to come up with a budget that works for your financial situation. This will help you avoid overspending and buy only what you need.
Shopping for school supplies can feel like a financial strain: Nearly 70% of families surveyed by Deloitte cited rising prices as the main reason they spent less on back-to-school supplies this year, while 47% cited reduced disposable income.
Amortization Fund
A savings fund is money set aside each month from your budget to cover future large expenses or debt payments. In this case, that money would be set aside for back-to-school shopping.
Essentially, this is a monthly spending category in your budget that can be kept in several types of bank accounts, such as a savings account, checking account, money market account, or certificate of deposit (CD).
Appreciate what you already have
Before you rush out to the store, take a good look at your list of school essentials and compare it to what you already have at home. This will help you narrow down what you still need to buy.
Check with your school and prioritize items you’ll need for the first day of school, and postpone purchasing unnecessary items that can wait until later.
A customer shops for school supplies as employees restock shelves at a Target store in Queens, New York (Lindsay Nicholson/UCG/Universal Images Group via Getty Images) (UCG via Getty Images)
Families should focus on making sure their children have the basics, like clothes, shoes, backpacks, electronics and school supplies, said Katherine Cullen, vice president of industry and consumer insights at the NRF.
Electronics, such as laptops, make up the largest portion of the back-to-school budget, averaging about $309 per household. Clothing, accessories, school supplies and shoes also make up a large portion of the budget.
Shop smart and shop early
Most families start their back to school shopping three weeks to a month before the school year begins.
But starting early gives you more opportunities to save: take advantage of sales and tax-free holidays throughout the year, spread costs across multiple paychecks, or use savings funds. (NRF data shows that spreading costs over time is often more appealing than actual discounts.)
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According to the NRF, online shopping remains the most popular option, but be aware of added costs. Cullen suggested that it may be more economical to buy the item online and pick it up in-store, or choose a slower, cheaper shipping method. Plus, always check the return policy to avoid unexpected costs.
Consider buying second-hand, especially when it comes to apparel and backpacks.
In particular, more families and Gen Z students are open to purchasing lightly used items to cut costs and shop sustainably.
Buy in bulk and cooperate
Buying school supplies in bulk or teaming up with other K-12 families to buy items together can also help reduce costs.
Summer sales and clearance events are a great way to score bargains. Look for families or schools that organize swaps of old uniforms or school supplies – another way to save money.
While it may be tempting to start shopping for next year early, Cullen advised caution.
“For many consumers, storing those items and finding a place for them in the home so they don’t get lost can be a challenge,” she says, “and because children’s growth is hard to predict, some of these items can be difficult to purchase that far in advance.”
Shoppers browse sales on school supplies at a Target store in South Miami, Florida, on July 27, 2022. (Associated Press Photo/Marta Lavandier, File) (The Associated Press)
If you don’t have enough funds to cover this year’s school supply list and can’t meet the income limit, consider contacting your local chapter or website:
The Salvation Army
United Way
Boys & Girls Clubs of America
Feeding Children
Operation Homefront (Military Families)
Local school district
National PTA
Community Centers and Churches
Local businesses
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