As summer draws to a close, parents and students are gearing up for the back-to-school season. Although some children would love summer to stretch on indefinitely, the need to get school supplies is drawing near. And let’s face it — as much as we love our kids, they can be expensive! Last year’s school shopping season was expected to cost most Americans $661 per child in grades K-12 on back-to-school purchases. Amidst the excitement of picking out new backpacks, locker decor, fall school clothing, and fresh school supplies, ensuring your finances are in order is essential. By taking proactive steps and planning ahead, you can minimize stress and set yourself up for a successful start to the academic year.
In this blog, we are going to lay out some essential tips and strategies to prepare your finances for the back-to-school season.
Review Your Budget
The first step towards financial preparedness is to review your budget. If you’re not currently budgeting, here are some budgeting strategies our team compiled to get started. Analyze your income, expenses, and savings goals to determine how much you can allocate towards back-to-school expenses. Consider any changes in your financial situation since the last school year and adjust your budget accordingly. Staying within your means will help you avoid unnecessary debt and financial strain.
Make a School Supplies Checklist
Sit down with your children and create a comprehensive checklist of necessary school supplies. Include items such as backpacks, textbooks, stationery, calculators, and electronics. By making a list, you can prioritize your purchases and avoid overspending on items that may not be immediately required. Additionally, keep an eye out for sales and discounts to maximize your savings.
Take Advantage of Tax-Free Weekends
In Texas, tax-free weekends are often scheduled before the start of the school year. This year’s Sales Tax Holiday/Tax-Free Weekend is August 11-13. During this weekend, certain items like clothing, shoes, and school supplies can be purchased without sales tax. For a complete list of what’s considered tax-free, check here. Take advantage of these opportunities to save money on your back-to-school purchases. Plan ahead, create a shopping list, and make the most of the tax exemptions available.
Explore Secondhand Options
Back-to-school shopping doesn’t always mean buying brand-new items. Consider exploring secondhand options for items like textbooks, school uniforms, or sports equipment. Online marketplaces, thrift stores, and community exchange platforms are excellent resources for finding quality items at a fraction of the cost. This approach can significantly reduce your expenses while still providing your child with what they need.
Review and Update Insurance Policies
The back-to-school season often involves valuable purchases like laptops, tablets, and musical instruments. Take this opportunity to review your insurance policies and ensure that your personal belongings are adequately covered. Speak to your insurance agent about any necessary adjustments or additional coverage options to protect your investments against theft, damage, or loss.
Plan for Extra-Curricular Activities
Extracurricular activities such as sports, music lessons, or clubs can add a significant financial burden. Research and plan for these expenses in advance to avoid last-minute surprises. Consider the costs associated with enrollment fees, uniforms, equipment, transportation, and any other related expenses. Incorporate these costs into your budget to ensure you can support your child’s interests without straining your finances.
Teach Financial Responsibility
The back-to-school season offers an excellent opportunity to teach your children about financial responsibility. Involve them in the budgeting process, educate them about the value of money, and encourage smart spending habits. In an earlier blog about starting good savings goals for your children, we discussed how you can teach them to differentiate between needs and wants, and help them set savings goals. By imparting these lessons early on, you are equipping them with essential life skills that will benefit them in the long run.
TFNB Your Bank for Life — Always Helping You Prepare For the Future
Preparing your finances for the back-to-school season requires careful planning and consideration. At TFNB Your Bank for Life, we understand the importance of financial preparedness, and we are here to support you in achieving your financial goals. Don’t hesitate to reach out for any financial questions you may have.
Have a successful and stress-free back-to-school season!
If you have any questions or would like to know more about our banking solutions, contact us at 254-840-2836
