The basics of back-to-school budgeting

Preparing children to return to school in mid-January can be an unwelcome financial burden, particularly if you were paid early in December and need to stretch your salary for longer than usual. Many parents face the challenge of managing back-to-school expenses this time of year and have less room to manoeuvre financially.

Gavyn Letley, from specialist loans provider DirectAxis, emphasises the importance of planning to spread out costs, rather than facing the pressure of buying everything at once.

Here are Letley’s six practical tips to help parents manage expenses associated with the new school year:

1. Take an inventory: Check backpacks and pencil cases to find out what your children need instead of what they want. Given a choice, most will want all new stationery even if there’s nothing wrong with what they already have. Many schools provide stationery lists. Use these to ensure children have what they need and that you don’t waste money on non-essentials.               
2. Make a list: You’ll probably spend more if you shop without a list. Writing the list together makes children feel involved and teaches them about planning. Prioritise by thinking about what they’ll need immediately and what you can buy later. This way you can spread expenses. Taking children shopping will teach them how much things cost and potentially encourage them to take better care of school supplies and uniforms.

3. Build a budget: Unless a child is starting school or moving from primary to high school, you should have some idea of what you spent the year before. By using this, the inventory of what you have and a list of what you need, you can estimate how much you’ll need to spend. If you’re unsure, check prices online or ask other parents. Involving children in drawing up the budget will help them understand money management and may deter them from asking for everything they see at the shops. If they do, it makes it easier to say ‘no’.                                                                                       
4. Score on second-hand savings: Children, especially younger ones, quickly grow out of uniforms. Try to save on big-budget items such as blazers by checking whether the school’s second-hand store has any good-quality items. Again, consider prioritising to spread the spend by focusing on what’s immediately necessary. Your children are unlikely to need jerseys in summer.

5. Seek sensible savings: Running from shop to shop to try and save a few cents here and there will add to the stress of back-to-school shopping and possibly cause you to forget something or make a poor decision. Rather consider saving on the most expensive items such as computers, tablets and sports equipment. Check for post-festive sales and back-to-school specials online. Second-hand sports equipment may be a better option if your child isn’t certain about the sport he or she wants to play or is unlikely to make the first team. Before shopping check the specifications of any required technology so you don’t waste money buying high-spec gadgets that aren’t needed. It’s also worth finding out if the school has an arrangement for discounts with some suppliers.                                                                    
6. Set something aside: Inevitably, there’ll be some expenses that the school didn’t warn you about or that you forgot. If you can, set some money aside to cover these unexpected costs.

“Planning, making a list, setting a budget, actively looking for savings and spreading expenses are the best ways of containing back-to-school costs,” says Letley.

• For more tips on how to manage money visit: https://www.directaxis.co.za/make-a-plan