Back-to-school season has a way of generating excitement and the feeling of a fresh start. It also has a way of bringing a never-ending list of expenses. In fact, some statistics show the average U.S. household spends over $1,300 for back-to-school supplies, dorm room accessories, and technology for college students.
Spending hundreds or thousands more in supplies, coupled with high tuition costs, can stretch a budget to the max. With a little planning and some smart money moves though, you can keep the stress (and the spending) under control.
1. Budget for School Supplies
The first strategy for managing back-to-school expenses is setting up a budget for school supplies.
Start by making an inventory of what you already have at home — chances are, you’ve got a stash of unused supplies from last year. Next, set a clear budget and stick to it when you head to the store. Shopping early can help you catch sales, but don’t forget about bulk-buying and dollar stores for the essentials.
If you have time to plan ahead, try setting up a separate “back-to-school” savings account early in the summer so you can spread out costs instead of cramming them into one paycheck. Even a small amount saved each week can add up by the time August rolls around.
2. Shop Around for Big-Ticket Items
If you need a laptop, tablet, or other tech, your gut reaction may be to panic over the price. Instead, start by comparing deals online, and consider buying gently used or refurbished electronics. Many come with warranties and work just like new. Don’t forget to see if your school or college offers student discounts before you start swiping your card.
This is also where a low-interest credit card from Space Age credit union can come in handy. Used responsibly, it can spread out the cost of big-ticket items without draining your checking account all at once. Our Visa credit cards often offer lower rates and better repayment terms compared to the high-interest credit cards from stores.
3. Set Up Automated Savings
The words college student and savings aren’t often used in the same sentence, but it is possible for students to set aside small amounts. One of the easiest ways to do this (even on a ramen noodle budget) is to set up automatic savings.
Students can set up automatic transfers from checking to savings accounts through an app or online. Whether it’s $20 from a part-time job or a little left over from a scholarship refund, even a small amount helps create a financial cushion for unexpected costs or ongoing school expenses throughout the year.
The back-to-school rush doesn’t have to throw your finances off track. With a clear budget, a plan for bigger purchases, and setting up automatic savings, you can tackle the back-to-school season with confidence. Contact Space Age today to learn more about these financial tools.
