As the new school year approaches, parents are swept into the whirlwind of back-to-school shopping. Amid rising prices and the constant onslaught of advertising, have you ever paused to wonder if you’re throwing money down the drain during this hectic season? This critical question isn’t just about spending money but about spending it wisely. So, what are the top 5 back-to-school shopping money mistakes?
Firstly, it’s crucial to avoid impulsive purchases based solely on sales; not every discount is a necessity. Secondly, parents should capitalize on sales tax holidays, which can provide substantial savings on essential items. Thirdly, considering second-hand options for school supplies can drastically reduce expenses without compromising on quality. Setting a clear budget before purchasing begins is another vital approach, as it prevents overspending and helps in financial management. Lastly, buying early is recommended to avoid last-minute decisions that could lead to paying higher prices, allowing parents to make more deliberate and cost-effective choices.
Key takeaways:
- Avoid Impulsive Sales-Driven Purchases: Do not buy items just because they are on sale.
- Leverage Sales Tax Holidays: Take advantage of state sales tax breaks to make significant purchases.
- Consider used Options: Explore second-hand markets for school supplies like textbooks, backpacks, and even tech.
- Set a Strict Budget: Establish a clear budget for back-to-school shopping to manage finances better and avoid overspending.
- Buy Early to Avoid Rush Decisions: Avoid last-minute purchasing, which can lead to rushed decisions and potentially higher prices.
- Strategic Planning and Prioritization: Plan purchases strategically by prioritizing essential items and keeping track of price trends and retailer markdowns.
Are You Spending More Money Than You Need to During Back to School Shopping?
Back-to-school shopping is a significant financial event—second only to the winter holidays regarding consumer spending. According to a report by the National Retail Federation, families are set to spend an average amount of money that might make even the most seasoned shopper’s eyes water. But, could it be that parents are making costly mistakes that could easily be avoided in the rush to prepare for a new school year?
Lynnette Khalfani-Cox, The Money Coach: As an advocate for smart spending, Khalfani-Cox suggests shopping out of season to save on costs. She points out that the best deals for clothing and supplies often aren’t during the back-to-school rush but rather in the off-season when items are on clearance.
1. Falling Prey to Every Sale and Discount
It might seem counterintuitive, but not every sale or discount is worth pursuing. Parents often make the mistake of buying items simply because they are on sale. Retailers are adept at creating a sense of urgency around sales, especially during the back-to-school shopping season. While jumping on every markdown is tempting, making purchases based on your needs is essential. Just because an item is marked down doesn’t mean it’s a necessary purchase.
Smart Tip: Always compare prices and quality; don’t assume that a “sale” price is the great savings you can get. Apps and websites can help you track product price histories to know when you’re truly getting a good deal.
2. Ignoring the Sales Tax Holiday
Many parents aren’t aware that several states offer a tax break, which can save money on clothes, school supplies, and electronics. Purchasing during this period means you avoid paying state sales tax, which can significantly reduce the overall cost, especially on big-ticket items like laptops and tablets.
Smart Tip: Plan your buying around the tax holiday dates. Keep track of these dates and prepare to do the bulk of your purchasing then to maximize savings.
3. Overlooking Second-Hand Options
One of the biggest mistakes is the belief that everything needs to be brand new. Textbooks, calculators, backpacks, and even some clothing items can be bought “Used” at a fraction of their original price. Second-hand shops, online marketplaces, and local sales often have excellent, barely used items perfect for the school year.
Smart Tip: Join local online groups where parents often post items their children no longer need. This will save you money and support a more sustainable approach to consumerism.
4. Not Setting a Budget
Many parents head into back-to-school shopping without a clear budget in mind. This oversight can lead to overspending, as it’s easy to get caught up in the excitement of shiny new products and ‘essential’ trending items that children clamor for. Setting a budget helps control your spending and ensures you cover all your bases without breaking the bank.
Smart Tip: Create a detailed buying list grouped by necessity and priority. Allocate a specific amount of money to each category and stick to it. Involve your kids in budgeting to teach them valuable personal finance skills.
Erin Lowry, Author of Broke Millennial: Lowry advises parents to involve their children in the budgeting process for school supplies, as it teaches them valuable lessons about money management and the costs associated with their education. She proposes setting a clear budget and discussing it with children to make them aware of financial limits.
5. Delaying Purchases Until the Last Minute
Waiting until the last minute is a common mistake that can cost you more. Early summer offers numerous opportunities to buy strategically. Retailers often have sales to clear out old inventory before the new stock arrives. Planning and making purchases earlier gives you a better chance of getting the items you need at a more affordable price.
Smart Tip: Watch sale cycles, sign up for retailer newsletters, and shop online early in the season. This way, you’ll be less pressured to buy everything at once and can take your time finding great savings.
Ways to save money
Parents can use various apps and websites online to enhance back-to-school shopping efficiency and cost-effectiveness. Honey helps by automatically applying the best available coupon codes and offering cash back. CamelCamelCamel is ideal for tracking Amazon prices and alerting users to price drops. RetailMeNot aggregates discount codes and offers across various retailers, optimizing savings. ShopSavvy scans barcodes and shows the best deals for on-the-spot price comparisons in physical store sets. It also tracks a defined budget for school expenses. Lastly, Kidizen provides an opportunity to buy and sell gently used school clothing and accessories, making it a superb choice for parents interested in sustainable buying options. These tools collectively streamline the shopping process while ensuring parents can stay within their financial means.
Howard Dvorkin, CPA and Chairman at Debt.com: Dvorkin highlights the use of technology in budgeting. He recommends apps like Mint for tracking expenses and adheres to budget limits during back-to-school shopping. Tools like these can alert you when you’re close to exceeding your budget, helping maintain financial discipline.
Conclusion
The back-to-school season doesn’t have to be a dreaded drain on your finances. By avoiding these common mistakes, you can turn this annual event into an opportunity to teach your kids about budgeting and strategic thinking and maybe even save enough to put a little extra into your savings account or towards a family treat. It’s about making smart financial decisions that help maintain your budget and prepare your children for the school year in the best way possible. So next time you’re drawn into a flashy sale or feel the urge to splurge on the latest gadgets, take a moment to reflect on these tips and choose a path that leads to both educational and financial success.
Frequently Asked Questions about Back to School Shopping
1. What is back-to-school shopping?
Back-to-school shopping refers to the purchases made before the beginning of the school year to ensure that students have all the necessary school supplies and backpacks for the upcoming school year.
2. How can I save money on back-to-school shopping?
To save money on back-to-school shopping, consider creating a shopping list to stick to a budget, look for coupons and discounts, and explore using money-saving apps. Additionally, buying during tax-free window can help you save on purchases.
3. What are some tips for parents during the back-to-school shopping season?
Parents can save money by researching the best deals, setting a budget, and involving their children. They should also make a shopping list to stay organized and avoid unnecessary purchases.
4. Why is it important to make a shopping list before going back-to-school shopping?
Making a shopping list helps you prioritize the essential items your kids need and prevents impulse buying. It ensures you buy everything required for the new school year while sticking to your budget.
5. Are there any buying hacks to get the best prices on back-to-school items?
One buying hack is to buy items like notebooks or pencils during off-season sales, when prices are usually lower. Another tip is to consider shopping online, as it often provides a wider selection and better prices.
6. How can I find the best deals when shopping for back-to-school items?
When looking for the best deals, consider checking for promotions at different retailers, keeping an eye on sales flyers, utilizing gift cards, and comparing prices to ensure you’re getting the best price available.
