In 1996, Staples ran a back-to-school ad using the 1963 Christmas classic, “It’s the Most Wonderful Time of the Year,” and even though my kids are now in their 20s and 30s, this song still makes me smile when I hear it.
As a parent, I remember the end of summer and the start of the new school year. Summer vacation was fun, but I also looked forward to its end, when days would return to a routine filled with structured activities.
Deloitte surveyed nearly 1,200 parents with school-age children about their back-to-school shopping plans in May 2024. Parents surveyed estimated they would spend an average of $586 per child on school supplies and clothing. Additionally, those same parents estimated they would spend another $582 per child on extracurricular activities.
As a financial planner, I used back-to-school shopping as a learning opportunity for my kids.
Over the summer, we created a budget, identified what we needed to purchase, and estimated the cost of each item.
On shopping day, we withdraw cash from the bank and place it in the envelopes assigned to each child. I wanted to visualize this process so that as the money in the envelopes is spent, the available balance decreases.
Using an ATM or credit card might have been easier, but it wouldn’t have had the same emotional and visual impact. My goal was to teach budgeting without the hassle, while still creating what I hoped would be a memorable experience for us.
We spent the day shopping and enjoyed a special lunch at our kids’ favorite restaurant while checking purchases off their list. This worked well for us because all of the kids were involved in the process and the outcome.
The children learned that if they decided to spend more on one item, other items would have to be cheaper than planned or removed from the list. The children had to prioritize what was most important and realize that once they had used up all the money in their envelope, the shopping spree was over.
It may seem a bit extreme, but the results were a success for our family.
Budgeting is important for financial success in any situation, but especially when it comes to back-to-school shopping. Without a budget and a shopping list, it’s hard to avoid overspending.
Back-to-school shopping can be stressful for both parents and students. Parents may worry about money and children may be anxious about fitting in at school. Sticking to a budget and following an agreed-upon shopping list can help minimize stress for both parents and children.
If your child is looking for a specific item, like designer sneakers, do some research online before you buy. You can often find coupons and promotions for the item you’re looking for.
Looking for coupons is one of the easiest and most effective ways to save money. Many companies offer products at discounted prices if consumers sign up for email subscriptions, and there are also many online services, websites, and browser plug-ins that can help you find great deals on back-to-school supplies.
Buy a year’s supply in bulk during sales. Stores often offer discounted items to draw customers in. Choose an item that is on sale at a discount and then browse other items or wait until other items are on sale. Don’t be afraid to buy generic brands. You may find products made by name brands for a fraction of the cost.
To manage spending on supplies like paper, binders, glue, and crayons, follow the list of items recommended by your child’s school. To help with this, retailers like Walmart allow schools to post recommended shopping lists on their websites. Search for “find school supply lists” and enter your school, city, and state. If you’re lucky enough to have a school post a list, completing the checklist online is a simple task.
Be careful about racking up debt to buy school supplies. A recent NerdWallet survey found that more than half (58%) of parents plan to buy back-to-school supplies with a credit card. According to Forbes, the average interest rate on a credit card is 27.62% as of August 1, 2024. This average card interest rate was calculated from a data set of over 250 credit cards in the U.S. market. Although credit cards are convenient, they’re not the best way to pay if you can’t pay them off every month.
Tips for keeping your back-to-school budget on track
— Every year, take stock of what your child will need for the new school year. Take inventory of items you already have.
— Make a budget.
—Check back regularly for sales throughout the summer holidays.
— Talk to your kids about ways to save money and involve them in the process.
—If you are using a credit card to make purchases because cash is unavailable, spend the next year building up funds in a separate account for the upcoming school year.
—Make a plan to purchase basic supplies that are on sale throughout the year.
—If you need to buy a book, search for used books.
Take the time to plan for the new school year. As you prepare for the new school year, make it a memorable experience for you and your children. And on the first day of school, after you drop your kids off at school, as you sip your morning coffee, remember that it’s the most wonderful time of the year.
Teri Parker CFP® is vice president in the Riverside office of CAPTRUST Financial Advisors and has been working in the fields of financial planning and investment management since 2000. She can be reached at Teri.parker@captrust.com.
First published: August 18, 2024, 5:00 AM
