Back-to-School on a Budget: 8 Tips You Need

August 26, 2024

As the back-to-school season approaches, so do the essentials that kids need that can strain any budget. The cost of supplies and clothing adds up. In fact, according to the National Retail Federation, Americans are expected to spend a whopping $874.68 per family on back-to-school shopping. Whether you’re shopping for a kindergartner or a college student, planning ahead can make the process more manageable and less stressful. To help matters, Ridgewood Savings Bank is here to provide you with practical budgeting tips to help provide a smooth and financially sound transition into the new academic year.

1. Create a Budget Plan

Start by listing all of the potential expenses, from school supplies to new clothes and equipment or technology needed for extracurricular activities. Having a clear picture of your expected costs helps in creating a realistic budget. Then, divide your budget into categories and allocate specific amounts to each. Ridgewood Financial Academy offers free, online budgeting strategies and tools to help you keep track of your spending.

2. Prioritize Needs Over Wants

When you create a budget, it’s important to be able to distinguish between what your child needs and what they want. Essentials like textbooks, notebooks, and uniforms should take precedence over trendy items or unnecessary extras. Prioritizing can prevent overspending on non-essential items.

3. Set Up a Savings Fund

Open a dedicated savings account specifically geared for back-to-school expenses. Ridgewood Savings Bank offers a variety of savings options that can help you set aside money throughout the year for this and other purposes. To help boost savings, Ridgewood's "Multiply the Change" program rounds up each purchase on the Ridgewood Debit Mastercard and transfers the difference from a checking to a savings account. Even small, regular contributions can accumulate to make a significant difference when it’s time to shop.

4. Involve Your Children in Budgeting

Teaching kids about budgeting is a valuable lesson, especially when doing back-to-school shopping. Opening a Youth Savings Account at Ridgewood can help your child learn how to manage money. For children 17 and under, you'll need a Social Security number or other government-issued ID, and some personal details like name, birthdate, and proof of address. You can open an account with as little as a penny, and Ridgewood will match your initial deposit up to $10. There are no monthly fees or minimum balance requirements. Providing a set amount of money for their back-to-school shopping can help children understand the value of money and the importance of making wise financial decisions.

5. Earn rewards and points when using credit and debit cards

Using debit and credit cards can be highly beneficial for back-to-school shopping and staying on budget. By choosing a card with rewards and points, you can maximize your spending power and stretch your budget even further.  Ridgewood’s Debit Mastercard® offers two rewards programs: uChoose Rewards, where you earn points on purchases made, and Purchase Rewards, which provides exclusive cash-back offers at select retailers.

6. Explore School Resources

Many schools offer resources to help reduce costs, such as free supply lists, uniform swaps, or discount programs. Check with your child’s school to see what options are available.

7. Plan for Extracurriculars

Activities like sports, music, and clubs often come with additional fees. Plan for and include such things in your budget and look for ways to save, such as early registration discounts or used equipment.

8. Stay Flexible

Despite the best planning, unexpected expenses can arise. Build in a cushion to have in case of surprises to avoid financial stress. Adjust your budget as needed throughout the school year. Our Money Management (MX) gives you the tools to create a budget and track spending. It’s free and available to all Ridgewood Mobile and Online Banking customers.

Remember, a little planning can go a long way in making the back-to-school season a breeze. Happy shopping and best wishes for a successful school year from Ridgewood Savings Bank!

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