Back to School! How to Stay Financially Healthy

It’s August already, and that means that it’s time for you and/or your kids to go back to school! It’s an exciting time with a lot going on but it can also be stressful due to expenses that keep growing and growing, especially as the cost of goods has increased significantly. 

Here are some tips to help you avoid much of the back-to-school stress:

1. Know what you already have at home: oftentimes we are so focused on what we need to buy that we forget what we already have. Make sure to do an inventory of your belongings firstand check that you don’t already have a spare backpack, notebooks or pencils tucked inside a desk drawer in your house. 

2. Make a list with the exact items you need and stick to it while shopping: We like to use the phrase “Never shop for food while you’re hungry” because you might be tempted to buy that delicious cake or drool over that box of cookies, even though you only meant to shop for some onions. The same advice applies to back-to-school shopping. Make a list together with your child about what they need, and commit to buy only the things on that list. Avoid spending extra, unplanned money on that shiny new folder, or light-up shoes, or any other unnecessary items. 

3. Do some online research: It’s a good idea to look up the price of items at different stores online before you go. You can also discover stores that are doing sales or promotions, or that even offer to match the prices of their competitors. 

4. Buy used or refurbished items, especially electronics: Just because something is used doesn’t mean that it’s junk! With the proper care, a laptop or tablet can last for many, many years and perform just as well as the latest model. And many electronics stores offer guarantees on their used products, so you can have some peace of mind while buying second hand. 

5. Student discounts: While not as common as they used to be, take advantage of the student discounts that you can find! You can purchase things like subscriptions to computer programs, productivity devices and much more for cheaper if you have a valid student ID that proves that you or your child is a student. 

6. Child care tax deductions: For our very young students, parents can claim up to 35% credit on qualifying childcare expenses, up to $3,000 for one child, or up to $6000 for two or more children. This includes daycare. 

7. Buy generic brands: Oftentimes, brand-name items are pricier simply because of their brand. However, unbranded or generic versions are usually made of similar or even the same materials, and cost much less. Think of when you go to a drug store or pharmacy-you can find brand-name medication for $10 a box, but the generic version which is the exact same medication, costs $2-$3 less. The same goes for many types of school supplies.  

8. Spread out the shopping: If it’s possible for you, you don’t have to do all of your shopping in one day. An item that may not be on sale during a store’s back-to-school sale might go on sale during a Labor Day sale, or fall in price once a new version comes out. You can save money by buying the right thing at the right time.  

Remember: you have the power to make back-to-school time a time of happiness and celebration, by taking steps to keep tight control of your finances. Happy learning!