08/08/2024
It’s getting to be that time of year again… Some parents might be saddened at the thought of snapping back-to-school pictures as their children progress through the grades, a little bigger, a little older. Others may be pleased (ecstatic) as they envision a peaceful house from 8am-3pm. No matter where you fall on the spectrum of emotions this coming school year, there’s typically a common trend associated with this time of year: stress, especially in regards to finances. If you’re feeling the back to school crunch, you’re not alone. A recent Credit Karma study found that 1 in 3 parents struggle to afford back to school expenses, with the average cost at $875 per household for school supplies, clothing, technology, extracurricular activities, and so on. Every parent wants what’s best for their kids, and there’s so much pressure to equip them with the latest fashion trends and must-haves. The issue remains the same, however: there’s only so much money to go around. While this stress is isn’t easily resolved, here’s a couple tips to hopefully not only help ease the financial strain as the school year begins, but to take advantage of the great opportunity it presents:
-Consult with your spending plan (budget) - Hopefully back to school shopping is something you anticipated and worked into your spending plan months in advance. If you’re just getting started on a budget, no worries. See if there’s any areas you can cut spending to free up some money in the meantime such as groceries, out to eat, or entertainment. If you found yourself unprepared this year, consider setting aside some money every month in a sinking fund so you’re ready for next year’s school expenses.
-If you need electronics, consider options other than buying new - Purchasing certified refurbished or renewed electronics from reputable sellers (Apple, Amazon, Best Buy) is a great way to save money. These items often even come with a warranty and favorable return policies.
-Buy generic brands when possible - Everyone likes the optics of name brand items but in reality, generic brands are usually of comparable quality at a fraction of the price. Are Crayola Silly Scents Twistable crayons awesome? Objectively, yes. But Meijer brand crayons do the same job with less distractions.
-Re-use, re-purpose, or shop pre-owned - Make an effort to shop in-house first. Try to put together a wardrobe with hand me downs from siblings or cousins or gather sets of school supplies from that overflowing junk drawer. Also, check out pre-owned or resale stores for quality discounted items.
-Do your best to discern cheap vs value - Getting things at low prices may feel good, but make sure the quality is high enough that they’ll last. Buying cheap things multiple times over is usually more expensive than finding quality items at a value.
-Use this as a chance to talk to your kids about money - This isn’t a tip that will save you money immediately, but it could pay dividends to your family for years and generations to come. Back-to-school shopping presents an amazing opportunity to talk about countless money topics with children of any age. Help your kids make a list of their school supplies, create a budget or game plan, shop online to check costs, discuss the effects of choosing different items over others. Bonus: if they have a say in what they buy and at least have an idea of what it costs, they’ll be much more likely to be happy with their purchases and take care of them. This is also an easy time to talk about goals and values. You can do this by talking through alternative options and what they could do with leftover money:
“If we buy these markers instead of the other ones, we’ll have enough to buy an ice cream cone tonight.”
”You can get your new teacher a gift if you choose the Target tennis shoes instead of the Nikes.”
”With the leftover money from buying a refurbished laptop, you can start saving money for your youth group retreat this winter.”
Spending and enjoying, saving and investing, generosity and giving, the conversations and lessons are endless. Take advantage of these everyday opportunities to help your children begin developing a healthy relationship with money.
Contact us if you find yourself in need of resources, ideas, or help facilitating these conversations.
https://www.flourishcouplesandfamilytherapy.com/flourishfinancial
