As the back-to-school season approaches, many parents are feeling the financial strain of purchasing school supplies and clothes for their children. A recent study conducted by Intuit Credit Karma revealed that 59% of parents expect to pay more for school supplies this year than in previous years. This increase in costs has left many parents in a difficult position, with over a third of them admitting that they will need to go into debt to cover these expenses.
The study also found that Millennial and Gen Z parents are feeling particularly strapped for cash this back-to-school season, with 56% of Millennial parents and 60% of Gen Z parents expecting to sacrifice necessities such as groceries and bills in order to afford school supplies. With these financial challenges in mind, it is important for parents to find ways to cut costs and stick to a budget.
One way to save money on back-to-school shopping is to shop second-hand. According to the study, 33% of parents are planning to rely on hand-me-downs this year. Shopping online can also help parents compare prices and find deals on big-ticket items like clothes and electronics. Additionally, parents can consider buying a few essential items at a time rather than purchasing everything at once, and take advantage of back-to-school drives and community resources to help supplement their child’s needs.
Cheri Read, a financial expert with Market Watch Guides, recommends involving children in the shopping process to help them understand the budget and value of money. By giving children a set amount of money to spend on their clothing, they can learn to prioritize their purchases and stay within budget. Buy now, pay later apps can also be a useful tool for managing expenses, but parents should be cautious of high interest rates and read the fine print before using these services.
For future back-to-school shopping, Read suggests opening a high-yield savings account to save and prepare for these expenses in advance. By saving money in a high-yield account, parents can earn interest on their savings and build a financial cushion for future back-to-school seasons. Planning ahead and being mindful of expenses can help parents navigate the financial challenges of back-to-school shopping and ensure that their children have everything they need for a successful school year.