Budgeting
Back to school financial planning can make your school year affordable and eliminate unwanted costs. Here’s how you Prepare Financially for the School Year Ahead.
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I used to LOVE the back-to-school season growing up, but now as a parent it hits a tad different. It’s that time of year again when you realize just how expensive education can be. Whether you’re sending your little one off to kindergarten or shipping your teenager off to college, preparing financially for the school year ahead can feel like planning a military campaign. First, please consider subscribing to my email list. Here’s what you’ll get for free:Our printable downloadsOur digital downloadsAll of our exclusive credit card articlesWaitlisted for our insights newsletter
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Create a Budget (Yes, You Really Need One)Let’s start with the basics: Create a budget. I know, I know, budgeting sounds about as exciting as watching paint dry, but trust me, it’s crucial. Here’s how to get started:List All Expenses: Include tuition, supplies, extracurricular activities, transportation, and those sneaky little fees schools love to spring on you.Categorize: Break down your expenses into categories like “Must-Haves” (textbooks, tuition) and “Nice-to-Haves” (new backpack, trendy clothes).Set Limits: Determine how much you’re willing (and able) to spend in each category. Be realistic—if your kid needs a laptop, budget for it.2024 Budget Binder + Free PrintablesLooking to start off 2024 with some accountability? Print our free budget binder and start the new year off right with getting your finances in order.Shop Smart: Back-to-School Sales Are Your Best Friend1. Start EarlyDon’t wait until the last minute. Sales start early, and the best deals go fast. (Waiting until the night before school starts is a rookie mistake.) If you’re waiting until tax free weekend then you may have an issue on your hands. With school starting earlier tax free weekend may happen after the fact depending on your districts start time. 2. Use Coupons and AppsRetailers love giving out coupons like candy. Use them! Apps like Honey or RetailMeNot can save you serious cash. I’ve been using Amazon alerts for price drops but my all time favorite is SlickDeals for all things discounts. 3. Buy in BulkIf you have multiple kids (or even if you don’t), buying supplies in bulk can save you a lot. Just make sure you don’t end up with 500 pencils you’ll never use.For example, Costco sells big packs of sharpies and dry erase markers. The pack costs about $10 for 20 markers but in store they are individually about $2 per marker. 4. Compare PricesDon’t just buy the first thing you see. Check multiple stores or websites. You’d be surprised how much prices can vary.Tuition Tips: How to Avoid Selling a Kidney1. Apply for Financial AidDon’t assume you won’t qualify. Fill out the FAFSA (Free Application for Federal Student Aid) and see what happens. (The worst they can do is say no, right?)But they did recently update it and “supposedly” its easier to complete. Either way, it allows you to receive federal grants and loans.2. Scholarships and GrantsThere’s a scholarship for almost everything. Do your research and apply to as many as possible. Free money is the best kind of money. Check with your school financial advisors and ask specifically about:School Sponsored ScholarshipsLocal High school Sponsored Scholarships (If you graduated locally.)Department Scholarships (These are reserved for certain majors so they’re less competitive.)3. Payment PlansMany schools offer payment plans that allow you to spread out the cost of tuition over the year. It’s like layaway for education.4. 529 PlansIf you’re planning ahead, consider a 529 plan. These tax-advantaged savings plans are specifically for education expenses.1. Prioritize ActivitiesDecide which activities are most important and budget accordingly. Your child doesn’t need to do everything (unless you enjoy being a taxi service).2. Look for DiscountsSome programs offer discounts for early registration or multiple children. Ask and you might receive.3. Used EquipmentFor sports or other activities requiring gear, consider buying used. Kids outgrow things quickly, and you can find gently used items for a fraction of the price.The Hidden Costs of Food and Transportation1. Pack LunchesBuying lunch every day adds up. Packing lunches can save you money and is often healthier. I’m a meal prepper by nature so this was a no brainier for me. 2. CarpoolTeam up with other parents to share driving duties. It saves gas money and gives you a few extra minutes of peace and quiet.3. Public TransportationIf it’s safe and feasible, public transportation can be a cost-effective option. Many cities offer discounted fares for students. Unfortunately, I live in Texas where literally everything is 15 minutes apart from one another and public transportation is only available within city limits.Emergency Fund: Because Life Happens1. Set Aside a FundUnexpected expenses will pop up. Having an emergency fund can save you from financial stress when they do.2. Aim for Three Months’ ExpensesIdeally, your emergency fund should cover three months of expenses. Start small if you have to, but keep building it up. I spoke about this in my post “How to Build an Emergency Fund on A Low Income”. Basically, no amount is too small to get started. How To Build An Emergency Fund On A Low IncomeOur Experts weigh in on how to build an emergency fund with low income. Plus 7 ways to get you started.My Final TakePreparing financially for the school year ahead doesn’t have to be a nightmare. With a little planning and some smart shopping, you can get your kids everything they need without breaking the bank. So take a deep breath, grab a cup of coffee (or something stronger), and get started.
