A+ Planning for a Stress-Free School Year
The ringing of the school bell signals not just new academic adventures but also a season of significant expenses for many families. From a fresh set of notebooks and pens to the fees for AAU basketball and music lessons, back-to-school costs can quickly add up. However, with careful financial planning, managing these expenses, including the often-overlooked costs of extracurricular activities and the annual haul of school supplies, can be less daunting. We have pulled together some tips to help you navigate the financial demands of the school year with confidence.
Understand Your Expenses for the Year
Every family should begin by getting a solid handle on the majority of major and minor expenses they can expect for the upcoming school year.
- Start by listing, in detail, all expected expenses, such as tuition, school supplies (using the school’s recommended school supply list), clothing, extracurricular activities, and technology. A spreadsheet or Word document will work well for this task.
- Allocate specific amounts to each category of spending based on experience or estimates from the school or team.
- Distinguish between what your children need and what they want. Focus on essentials before considering any additional items that may be more of a luxury.
- Consider how to fit the additional costs of keeping your child busy or involved in extracurricular activities into your budget, if this is essential for you. Whether reducing another expense to make room for it, or supplementing your income.
Create a Manageable Budget
Now that you have categorized your expenses, it’s time to create your budget. Here are some tips to ensure your budget is manageable and valuable throughout the year
- Transfer your expenses into an actual budget spreadsheet or a budgeting app.
- Set a maximum back-to-school budget based on your affordability, and allocate funds for each category according to your priorities and needs.
- Keep track of your spending against your budget as you make purchases. Use receipts or notes in your budgeting app or spreadsheet.
- Review your budget to see what worked well and what didn’t after completing your back-to-school shopping. This will help you prepare for next year.
- Update the budget as new expenses arise or as extracurricular activities change (and they will change)!
Shop Around and Explore Options
Many stores offer back-to-school sales in late summer, which can help you save money on supplies. Many retailers and service providers also offer discounts for students.
- Take advantage of sales and discounts by shopping early, as you go out shopping for items on your list. Don’t hesitate to ask if discounts are available, whether you’re shopping for clothing, supplies, or services.
- Check platforms like UniDays and Student Beans, which offer discounts across various categories.
- Save on taxes. Many states observe sales tax holidays during the months leading up to the start of the school year. Plan ahead to ensure your spending goes further by avoiding taxes whenever possible.
Build strong financial habits for the future (in you and your family)
Since your kids will be in school for potentially many years to come, it is essential to maintain this system and continue to develop solid financial habits in yourself and among your children.
- Get in the habit of annualizing expenses so you can better manage your overall budget. This can be particularly helpful when planning for extracurricular activities.
- Online banks like Ally and SoFi enable you to create multiple categories, helping your money grow with their HYSA (High-Yield Savings Account).
- Teach your kids about money and emphasize the importance of money management to ensure they develop healthy financial habits that will carry them through school and into adulthood. Ensure they understand your budget.
The start of a new school year can bring panic and worry to families, but with careful planning and sticking to that plan, you can ensure that you and your children have the best school year possible!
