Teach Kids How to Budget During Back-to-School Season

With first day of school for students coming up, back-to-school shopping is likely top of mind for families this month. And as anyone with school-aged children or young adults heading off to college knows, those extra expenses add up fast.

One of the things we've learned through teaching Financial Education to thousands of local students is that nothing beats first-hand experiences for helping classroom lessons stick.

Here are a few tips to help you kill two birds with one stone as you prepare the children or grandchildren in your life for a new school year with the necessary dorm essentials, backpacks, school clothes and supplies.

1. Talk about Wants vs. Needs

This is a great place to start and can help make sticking to your budget much more likely. Ask your child to consider each item, estimate costs and find simple ways to cut back. What can you reuse from last year? If backpacks, lunch boxes and other items are still in good shape, there's really no need for new ones.

2. Write out a Budget, Together

Taking the time to put pen to paper is a valuable exercise for kids who may not understand how quickly items add up. It may even help them find new ways to save. For example, are used books a cheaper option for your college student? Can you challenge your elementary or middle school child to scan the latest ads to find the best deals on the items they can't do without?

3. Emphasize Savings for the Future

If there are items your kids really want but don't need, encourage them to save their own money and return to purchase these items later. This is a great opportunity to teach them about the value of heard-earned money, how to make good choices and how to save. It's a lifelong lesson that will benefit them for years to come.

4. Earn Cash Back For Buying Necessities

At Abound, we offer Free Checking Accounts with CashBack+. This is a Member benefit inside Online and Mobile Banking. You can browse offers personalized to your favorite brands + hundreds more. Let your kids scroll through the list and see if any brands excite them. Purchase a gift card using money straight from your Abound Checking Account (in any amount), you'll receive up to 20%¹ cash back in your CashBack+ wallet. Then, you can either deposit those funds into your Checking Account (to appear within 24 hours) or purchase more gift cards.

5. Pick the Best Payment Option

Even after budgeting, financing some or all these extra expenses may be necessary. However, it's important for older kids, and especially college students, to understand that the easiest or fastest financing option may not be the best option. For example, "Buy Now, Pay Later" at the time of purchase may offer no interest but charge hefty late fees or harm your credit if you can't make your payments on time. Read the fine print thoroughly to understand what you're getting into and avoid overspending. A little bit of planning can save you big in the long run. Check out Abound's Credit Cards or Personal Loans options to see how they compare with store cards and other financing.

Bonus Tip: If you have car payments or other consumer loans, you may want to ask your lender if they offer "Skip-a-Pay" promotions during the summer months. Depending on your budget, simply skipping a monthly loan payment for a modest fee may be enough to cover your back-to-school expenses. At Abound, we're offering this promotion right now² through the end of August.

Lastly, don't forget about helping others. You may want to consider donating gently used clothes or shoes that are in good condition, but no longer fit or your child will no longer wear. You may be able to contact your school resource cetner to see if they can help you find these items a good home.

Wishing all of our local families a great school year filled with opportunities for lifelong learning!