Notebooks, binders, backpacks, and more: back-to-school items can quickly add up and put a serious dent in your wallet. According to a 2024 survey from Deloitte ¹, parents of school-aged children planned to spend approximately $586 per child on clothes, shoes, and school supplies last year.

Smart financial decisions are key to managing your household with peace of mind, so we've compiled some helpful tips to keep your finances on track during the back-to-school season. This is also a great opportunity to involve your children and teach responsible spending habits.

Overview

• Take Inventory of What You Already Have
• Review Your Finances and Create a Realistic Budget
• Make a Tiered Shopping List
• Shop Smart and Plan Ahead
• Tackle the Unknown Costs
• Involve Your Children
• Save Vs. Splurge
• Conclusion

Take Inventory of What You Already Have

An important first step when it comes to back-to-school shopping is assessing what you already have at home. Certain items, such as backpacks or lunchboxes, may be used for years before new ones are needed. Look for leftover items such as pencils or partially used notebooks and keep track of clothing that still fits.

You should also take this time to look at any lists or information provided by your child's school. Some classrooms, schools, or districts will offer basic supplies such as writing utensils and folders, which might shorten your shopping list. After this first step, you'll have a good idea of what you do and don't need to buy, and you can begin creating a budget according to your financial situation.

Review Your Finances and Create a Realistic Budget

Before creating a back-to-school budget, it's important to review your finances and understand what you can realistically afford. A Pew Research Center survey from 2024² found that only 59% of Americans feel confident creating a monthly budget to manage their finances. Take a close look at your household income, monthly expenses, existing debt, and savings to help you determine how much money is available for school-related costs. This step can make a world of difference when it comes to supporting your long-term financial stability.

Make a Tiered Shopping List

Once you understand what your back-to-school budget looks like, create a shopping list of clothes, shoes, and school supplies for the new school year with consideration of recommended supplies from teachers' lists. Creating "tiers" is helpful to know what supplies and apparel are most important to have before the school year begins as opposed to items you can purchase later or aren't a necessity. For example, "Tier A" could contain items that your children need to have by the first day of school or fall clothing. "Tier B" could contain items that they'll eventually need but aren't necessary to have immediately, such as a winter coat. "Tier C" could be items that aren't a necessity but would be nice to have if the budget allows after accounting for all Tier A and B purchases.

Shop Smart

Many families unknowingly end up overspending in preparation for back-to-school. Branded items and trendy stationery usually come with unnecessarily high price tags without offering much additional benefit compared to generic items. Comparing prices of similar items before purchasing can add up to big savings, even if it only seems like the difference of a few cents or dollars on the price tag.

Here are a few ways to shop smart for back-to-school:

• Take advantage of peak sales from mid-July to early August. Many states host tax-free weekends for school supplies, clothes, and sometimes even electronics.
• Leverage rewards systems and price-matching programs with major retailers like Walmart, Target, and Best Buy.
• Use coupons and shop the clearance section.
• Shop second-hand for clothes and gently used school supplies.
• Look out for local community swap-and-shop events.
• If you have enough funds remaining in your budget, stock up on school supplies for the next year when there are markdowns during and after the school year.
• Buy items in bulk and split costs with other families.

While it's nice to be able to purchase everything at once, if it will put you over your budget, you can stagger purchases that aren't needed immediately as mentioned in the tiered shopping list section.

Tackle the Unknown Costs

Despite careful planning, sometimes there are still costs that are hard to account for. Classroom-specific items, such as scientific calculators or online learning tools, can come as a surprise as you get closer to the start of the school year. Additionally, extracurricular activities, like music lessons or sports, often require pricey equipment. Create a "buffer" category in your budget for miscellaneous or unknown costs.

Involve Your Children

A great opportunity that comes with back-to-school shopping is including your children in the experience. Discussing budgeting and spending within your means gives children an opportunity to understand the value of making smart financial decisions and being resourceful. Research from the Consumer Financial Protection Bureau³ shows that children begin forming an understanding of values and habits surrounding money from a young age, so going through the process of back-to-school planning and shopping together can help good financial habits take root early on in your children's lives.

Save Vs. Splurge

Focusing on needs before wants is a necessity when you're on a budget and trying to ensure your children have the supplies they need, but this doesn't account for your children's desire to express themselves. One way we often express ourselves is through clothing and accessories, and children are no different with school supplies. When children sport items that they feel good in and resonate with, it can enhance their self-esteem. So, when your child asks for a T-shirt with the newest superhero star or the branded notebook for their favorite doll line, how do you approach this when there are more affordable alternatives?

Deciding when to save or splurge is another opportunity to teach your children valuable decision-making skills. Let's say your child needs three new notebooks. Budget permitting, you can tell them that they can pick two simple notebooks and one "special" notebook that has their favorite character on it. Taking the time to explain the reasoning behind these parameters can help them understand the concept of budgeting and make those "special" purchases even more meaningful.

Conclusion

In summary, don't let school-related purchases catch you off guard. By taking the time to strategize your approach to the back-to-school season, you can help your kids get what they need while keeping more money in your wallet. Start saving now with these planning tips and shopping strategies to make this school year the most affordable one yet!

Sources and Methodology

1. 2024 Deloitte back-to-school survey. Deloitte. July 15, 2024.
2. Roughly half of Americans are knowledgeable about personal finances. Pew Research Center. December 9, 2024.
3. Building blocks to help youth achieve financial capability. Consumer Financial Protection Bureau. September 2016.