Senate Cents: A Financial Wellness Blog

The first day of school is right around the corner. But with the excitement of another academic year comes a hefty price tag for many U.S. families and educators. This fall, parents of K-12 students expect to spend an average of $586 per child on back-to-school shopping—not including the cost of extracurricular activities.¹ While some of this staggering total can be linked to the lingering effects of inflation, many families also attribute it to the growing list of must-haves—especially in categories like technology and apparel.

And while every parent wants to set their student up for success, it’s entirely normal to feel financial stress and anxiety in this heavy spending season. A back-to-school budget can help you and your children manage those emotions, set expectations and protect against overspending.

Here’s how much you should plan for and additional ways to save on your shopping.

How Much Money Do You Need to Save for Back-to-School?

When determining an appropriate budget for back-to-school expenses, it's helpful to have a number in mind of what families like yours can expect to spend this year.

Average cost of back-to-school shopping

Parents of children in elementary, middle or high school are planning to spend a household average of $875 on clothes, shoes and school supplies this fall. This comes down to roughly $586 per child (about 1.5 children per surveyed household).¹

Keep in mind, your final total will depend on your family size, where you live, personal preferences and the availability of specific items. But here’s a look at how these averages break down and an overview of common expenses.

Common Expenses to Include in Your Back-to-School Budget

Apparel and shoes tend to be top categories for back-to-school shopping. But they’re only two pieces of the puzzle. Here’s an idea of the type of expense along with the average estimated cost per student.^*

• Clothing: $169
• Shoes: $113
• Electronics & technology: $206
• School supplies (i.e., notebooks, folders, glue, pencils, markers, scissors): $94

Additional expenses for college-aged kids

If your child attends a college or university and you help them with education-related expenses, you may wish to pad your budget further. Families expect to spend an average of $1,364.75 per child on back-to-college this year.¹

The reason? College students typically require additional supplies not needed by K-12 kids. Those can include everything from extra technology and textbooks to toiletries and dorm furnishings. And that’s not even counting tuition, room and board, and books. Consider these expenses and the average estimated cost per college student.²

• Clothing: $182
• Shoes: $113
• Electronics & technology: $337
• School supplies: $95
• Toiletries/personal care items: $115
• Dorm/apartment furnishings: $190
• Initial food/groceries: $151
• Gift cards: $105

6 Ways to Spend Less During Back-to-School Season

While it’s helpful to set a realistic expectation of school-related expenses, sometimes the bigger reality is that you’ll need to trim your spending more than you thought. Here are six tips to help you do just that.

1. Stick to a list. Following a shopping list can help ensure you aren’t tempted by impulse buys. Many K-12 schools and classrooms issue supply lists tailored toward your student’s curriculum and grade level. Dividing your shopping list into these essential must-haves and additional nice-to-haves can help you more easily identify costs to cut.

2. Reuse what you can. In many cases, your child likely has some back-to-school basics that are “buy once, use many”—from backpacks and folders to computers and sporting gear for extracurriculars. Before you head to the store, take inventory of items you already have that can be used again. You also may encourage your child to prioritize gently used, “new to you” items that are handed down from a friend, neighbor or older sibling. Or items purchased for a low price at your local thrift store.

3. Compare prices. Before you “add to cart” online or in person, be sure to check a few other stores or sites to make sure you can’t get the same, or similar, products for cheaper. In exchange for your business, some vendors even may be willing to price match their competitors.

4. Leverage credit card rewards and cashback. Many credit cards offer cash back on purchases that you can potentially tap for school-related purchases. Just keep an eye out for potential annual fees and APRs that could pose future financial challenges.

5. Buy in bulk. Consider buying school supplies in bulk with other families to split costs.

6. Take advantage of tax-free school supplies. Your state may offer a sales-tax holiday or tax-free weekend to help ease the financial burden of back-to-school shopping. Alternatively, it’s possible you live in a state without sales tax, period.

Applying Common Budgeting Methods for Back-to-School Shopping

With the school year just around the corner, it's likely that you've already started—or even finished—your back-to-school shopping. However, it’s never too late to refine your budgeting approach, ensuring that you stay on track for the rest of the year and prepare for future expenses. Here’s how you can adapt common budgeting methods to manage this year’s back-to-school costs and set yourself up for success moving forward.

50/30/20 Budget for Back-to-School Expenses

Even if you’ve already made most of your purchases, the 50/30/20 rule can still help you balance your finances as the school year begins. Start by reviewing what you've spent and categorize those expenses. Essential items like textbooks, school uniforms, and required supplies fall under the "needs" category, while discretionary purchases like trendy backpacks or accessories are classified as "wants." If you’ve overspent in one category, adjust your budget in other areas to stay within your overall financial plan. This method not only helps you manage current expenses but also sets a foundation for better budgeting in the future.

Envelope Budgeting for Ongoing School-Related Costs

While it might be too late to start envelope budgeting for this year’s back-to-school shopping, this method can still be useful for managing ongoing school-related expenses throughout the year. You can create envelopes for categories like “school lunches,” “field trips,” and “extracurricular activities.” By allocating funds to these envelopes now, you can avoid unexpected financial strain later in the school year. This approach helps you stay disciplined with your spending and ensures that you’re prepared for any upcoming costs.

Involving Your Kids in Ongoing Budgeting

Although the bulk of back-to-school shopping may be behind you, it’s still valuable to involve your children in budgeting discussions. This ongoing involvement can teach them about financial responsibility and help them make informed decisions throughout the year.

Consider having your children contribute to ongoing school expenses, especially if they earn an allowance or have a part-time job. This practice not only lightens your financial load but also gives them a sense of ownership and accountability. For instance, if your child wants to join a club or participate in a special school activity, you could agree to cover the basic costs while they pay for any extras. This approach reinforces the importance of budgeting and helps them develop smart money habits for the future.

Article content and third-party links are provided for information purposes only. Original article source: www.thrivent.com. ¹Morningstar.com. “Back-to-school shopping expected to cost $875 on overage – as much as holiday spending.” July 15, 2024. * Per-child costs calculated by dividing the household estimates by assumed 1.5 children. ² “Back-to-School Shopping Statistics.” CapitalOne Shopping Research. July 14, 2024.