- August 9, 2021
It’s hard to believe that it’s August already and the hustle and bustle of getting those little darlings back to school is in full swing. This can be a challenging task, especially when trying to find the appropriate balance between what they need and what they want. But perhaps the greatest challenge is how you are going to pay for it all. In line with the rising costs of living, the price of school supplies has skyrocketed. Conservative estimates from our informal survey indicate that, on average, school supplies can cost between $500 - $1,000 dollars per child!
To help you manage your back-to-school woes, we have come up with some tips and tricks to get your child off to school without breaking the bank.
Tip #1 – Reuse last year’s supplies
It is amazing how much you can save if you didn’t have to purchase the same items year after year. The backpack, for example, is a necessity, a carryall for supplies, books, homework and all the other stuff that kids must have for school. The cost of a new one can range from $40 to $100. So, the first thing is to examine last year’s backpack. If it is still in relatively good condition, reuse it. If you must purchase a new one, it may be a good idea to invest in one that is a little more expensive but will hold up for several years.
The same concept applies to uniforms. While this may not be a cost you can avoid with wear and tear along with your child’s growing body, there may be items that can be reused or passed down to younger children. This can be a cost savings for you. And if you must purchase new items, shop around and compare prices. Combine these trips with other errands to conserve time – and gas!
Tip #2 – Visit your neighborhood dollar store
There is no need to pay premium prices for small items like pencils, pens, sharpeners, and erasers. Our advice is to purchase as many of these goods as you can from dollar stores instead of larger retail suppliers. You can usually find better deals at these places. It also wouldn’t hurt to use some of these items collected from seminars, workshops and other events since they are normally given away for free.
Tip # 3 – Beware the Brand
For items like school shoes and sneakers, it can be easy to fall prey to the need to buy the top name brand. But this can be costly. Sources say this can be as high as $300! Plus, styles change so often, you’d can end up spending hundreds every term just to keep up. The key here is to not bust your budget to satisfy your child’s latest ‘must haves’. Stay within the parameters of what you can afford. What you want is quality items that will last and be comfortable – brand notwithstanding.
Tip #4 - Forget the ‘Joneses’
We cannot stress this enough! Do not spend money trying to impress your neighbors, friends, or co-workers. We are not saying to let your children go without, but the money spent on designer shoes and accessories that will only be used for a short time can be put to better use. Consider investing those extra hundreds of dollars into your child’s future. One of the ways you can do this is by starting a college fund. College is becoming increasingly expensive. In the United States, tuition costs average at around $38,000 at a public university and $50,000 at a private institution. For international students, these costs can be higher. Consider opening an RF Education Investment Account (EIA) that can help cover some these costs.
Tip #5 – Start planning for next year
Start saving early
Now is the time to start thinking about next year. Start putting aside a little every so often towards 2022’s back-to-school preparations. An easy way to do this is to calculate the average total amount spent in previous years and divide that by 52. This will give you a good estimate on how much you need to save each week to be ready for next year. If you spent $800 dollars this year, for example, you would know that you will need to set aside around $15 per week to cover next year’s school supplies. It is much easier to save smaller amounts over the course of a year than it is to come up with a lump sum of several hundred dollars in one month.
One final note
The fact of the matter is getting your child or children ready for school is expensive. However, if you treat this task as you would any other financial goal, that is, with proper financial planning, it can be significantly easier. Remember to always seek the advice of an investment professional if you need help.
If you need assistance managing your finances call 603 6000 and make an appointment with a financial specialist at RF TODAY!