Building a Back-to-School Budget

Back-to-school spending isn't just about clothes and markers anymore.

In 2014, Forbes reported that Accenture estimated (https://www.forbes.com/sites/nicoleleinbachreyhle/2014/08/19/teachers-spend-own-money-school-supplies/#2468cf1822a4) that nearly half of respondents reported they would spend $500 or more on back-to-school expenses, including not only clothes and desk supplies, but electronics as well.

Yet there's one more aspect of back-to-school spending that's growing and can add hundreds – and sometimes thousands – to a family's overall K-12 education budget. Since the 2008 economic crisis, many public school systems have tried to make up for funding shortfalls by adding first-time or expanded fees for sports, extracurricular activities and specialized academics.

This means that back-to-school budgeting, even for families with kids in public school, now requires a more holistic, year-round approach to all back-to-school expenses.

Given their potential dollar amounts, parents should examine school fees first. Public education has never been completely free of charge beyond local taxes – parents have traditionally paid extra money to support their kids' participation in sports, music or other extracurricular activities. However, many school systems are adding fees for a broader range of offerings including after-school activities, top-level courses, lab-based instruction and even Advanced Placement (AP) classes. So before you start spending money on clothes and supplies that can be bought off-season, on sale or possibly used, get a handle on how applicable instruction and activity fees might affect your budget. (http://www.practicalmoneyskills.com/ budgeting/). Parents in financial need may qualify for public aid or grants to cover such fees; if not, choices will need to be made.

Consider turning back-to-school shopping into a money lesson. Most kids like to have certain kinds of clothes, shoes or supplies. Those "wants" can be turned into a discussion about spending priorities, value, choice and comparison shopping. Using the Back to School Budget (http://practicalmoneyskills.com/resources/financial_calculators/education_college/back_to_school) calculator with your kids can help them learn how create a budget before shopping for essentials. As kids get older, the discussion can expand to cover bigger-ticket purchases like smartphones, computers and fees for special courses and activities they want to pursue. Some of these issues might evolve into a discussion about earning money through chores or a part-time job.

Once priorities are decided, every expense should be tracked, including a child's round trip school transportation, meals, tutoring fees or immunization and healthcare expenses not covered by insurance. And once that budget is set, it means a constant search for smart ways to cut. Some ideas may include:

• Car pooling (track your costs to make sure you're not adding significantly to your overall transportation budget)
• Packing lunches at home
• Working with school administrators to raise outside donations or grant funding to cover parents' out-of-pocket costs
• Organizing school supplies in one place to avoid purchasing duplicates
• Renting equipment, supplies or instruments used until a child's interests are established
• Scouting garage sales, thrift shops and online marketplaces for used, required-edition textbooks, instruments, electronics, sports equipment, clothes and other supplies you'd otherwise buy new; online resources shouldn't charge shipping or return fees
• Reviewing school and classroom supply lists before buying essentials
• Bulk- and group-buying supplies and services with other parents to get volume prices
• Consolidating back-to-school shopping during tax-free days (if your state offers them)
• Swapping used supplies and equipment with other parents
• Checking retail memberships for any back-to-school savings they offer
• Watching for print and online coupons or special discount offers through your school
• Listening to your kids – they might spot money-saving ideas faster than you can

One final secret budget item – rewards. Saving money on back-to-school expenses can help parents meet a number of financial goals, but kids' academic or activity success deserves recognition. Consider setting aside a little of those savings for a reward they can enjoy.

Bottom line: When setting your back-to-school budget this year, think beyond the supplies. Consider every possible fee and expense associated with your child's school year and plan accordingly.