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Beat the Back-to-School Budget Blues
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For more information contact:
Tanisha Warner (713) 394-3202 |
Release Date: July 11, 2007 |
With the start of the new school year quickly approaching, many parents are beginning to feel the pressures only back-to-school shopping expenses can bring. 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.
When preparing a back-to-school 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. By having items both prioritized and budgeted you can easily trim from the bottom in order to meet your budget’s needs. Don’t forget often overlooked expenses such as yearbooks, extra-curricular uniforms, field trips, science projects and immunizations.
The experts at MMI encourage consumers to consider the following important shopping tips for those major back-to-school expenditures:
Determine clothing needs vs. wants. School age kids have a habit of trying to keep up with the Jones’ and may insist on a certain brand or the latest fashion trend. In this case, you may want to compromise or give them a set budget up front. It’s important to remember that what you buy is just as important as how you buy it. Basic durable clothing will stretch your dollars significantly. Also, avoid being tempted to purchase a year’s worth of clothing at one time.
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 the 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. Not only will they learn about smart shopping, they will value what you buy for them much more.
“Remember, the most important strategy for back-to-school shopping is to stick to your budget,” said Cate Williams, vice president of financial literacy at MMI. “Without a realistic budget and spending plan, back to school expenses can be a big blow to the family budget. With proper planning, you can prepare your children for another school year without breaking the bank.”
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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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