Back to School Budgeting Tips
Posted
on Tuesday, July 30, 2024
in
Financial Education
Back to school season can be an expensive time of year, especially when you’re enjoying your summer and the new school year suddenly sneaks up on you. Use these tips to help save money this back-to-school season, providing you with savings and peace of mind.
1. Determine the difference between needs and wants.
While aisles filled with shiny, new school supplies can be tempting, it’s important to determine the difference between needs and wants. Think about what you have at home – the pack of pencils your daughter never opened last year, the numerous boxes of crayons you’ve bought year in and year out, the stack of notebooks with hundreds of blank pages. These items can be reused rather than buying new just for the sake of back-to-school shopping. Stick to the essentials and start buying “wants” only after the “needs” have been purchased.
2. Establish a spending limit.
Once you’ve made a list of needs and a list of wants, establish a spending limit to complete your shopping. Ensure that you can check off all the needs from your list and, if you’d like, add a little cushion to purchase those extra wants. Creating a budget allows you to think about the value of your money and encourages you to shop for the best deals.
3. Spread out your back-to-school shopping.
Don’t wait until the last minute to do your back-to-school shopping. Start now so you can compare prices and shop sales. Buy a few items at a time to spread out your purchases across pay periods, making the extra expenses easier to handle.
4. Be a smart shopper.
Smart shopping requires you to be calm, patient, and thrifty. Along with spreading out your back-to-school shopping, follow these tips to save even more money:
- Buy generic brands instead of name brands.
- Compare prices at different retailers and consider shopping at stores that price match. This allows you to shop several competing sales from one convenient location.
- Buy school supplies in bulk, especially if you have several children.
- Shop at the dollar store or the thrift store for unexpected savings.
- Use coupons, rebate sites, and cash back apps to receive a return on your back-to-school shopping. Check out Purchase Rewards in United Bank & Trust’s Mobile App or Online Banking for additional savings.
- Sign up for email subscriptions from retailers to receive sale notifications and coupons.
5. Utilize the State of Iowa’s Tax-Free Weekend Holiday.
Back-to-school season means it’s also time for the state of Iowa’s tax-free weekend. This year, the event runs from Friday, August 2nd to Saturday, August 3rd. The weekend allows Iowans to shop without paying the state’s 6% sales tax and the 1% local option sales tax imposed by many cities across the state. Check out the Iowa Department of Revenue for a full list of tax-free items.
6. Once you’ve finished, plan ahead for next year.
It’s never too early to begin planning for next year. Consider shopping school supply sales throughout the year to make next year’s back-to-school shopping less overwhelming. Spacing out the shopping throughout the year also makes it easier to spend a little money over time rather than spend a large sum all at once.
As a parent, back-to-school time can be overwhelming. Utilize these tips to relieve yourself of the season’s financial stress and bring the magic of the new school year to your children. For more financial tips, visit United Bank & Trust’s website.