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Start the School Year Right by Shopping Smart
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For more information contact:
Tanisha Warner (713) 394-3202 |
Release Date: July 19, 2006 |
There will be 55 million students heading back to school this fall that need an astonishing amount of back-to-school supplies and clothing. In fact, a recent study by Money Management International (MMI) found that nearly half of surveyed parents plan to spend more than $200 per child on back-to-school shopping; 9 percent plan to spend more than $400 per child.
For larger families, or those without a savings cushion, those expenses can be a big blow to the budget and to credit card balances. Additionally, this expensive annual tradition has not adapted to a time when there are more single parents and, in general, less money in the average family budget. Below are several tips to consider before heading to the stores in preparation for the first day of school:
Create a budget. Start by taking a thorough inventory of what you already have and then develop a budget for what you still need. Then, list each item in priority, from most important to least important. A prioritized shopping list can be easily trimmed by cutting from the bottom. Be sure to factor in often-overlooked expenses such as extra-curricular activity uniforms, field trips, and immunizations. Also, be sure to check your child’s school dress code policies before purchasing any clothing.
Save on school supplies. Shopping the “back-to-school” section at an expensive retailer may be convenient, however, comparing prices with lower priced outlets and office supply stores could save you money. Each teacher will have their own requirements, so have your supply list in hand prior to making any purchases to eliminate non-essential expenses.
Involve your children. While back to school shopping can be painful financially, it offers the opportunity for parents to teach their kids a valuable lesson about budgeting, credit, and wants and needs. A 2006 MMI poll revealed that a majority (57 percent) of parents say their children share the responsibility for selecting back-to-school supplies and clothing. To make the most of the experience, sit down with your children and decide on a budget. Teach them to comparison-shop and point out that if they get the expensive jeans, they will have to cut back in other areas.
“Finally, avoid putting back-to-school purchases on a credit card—the price is just too high,” said Cate Williams, vice president of financial literacy for Money Management International. “For example, if you spend $400 on an 18 percent interest rate credit card during your child’s first year of high school and make only the minimum monthly payments (4 percent of the balance), he may get his high school degree before you finally pay off the balance.”
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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