Back-to-School Budgeting

Jess Quindlen: [00:00:00] Welcome back to the Sound Cents podcast. I'm Jessica Quindlen. Today we're discussing back-to-school budgeting. It may be a little early, but it'll be here before we know it. I have my kiddo who's starting school soon.

I have with us today two wonderful guests, Bree Shellito, our Senior Manager of Community and Workforce Wellbeing. Hello, Bree.

Bree Shellito: Hey.

Jess Quindlen: And Emma Protsik, our Financial Coaching Supervisor. Hello, Emma.

Emma Protsik: Hi, Jess.

Jess Quindlen: All right, Bree, let's dive in. Why is it important for families to budget for back-to-school expenses?

Bree Shellito: Yes. Well Jess, I'm so excited this is coming out with a little bit of extra buffer room before school starts, because it definitely is important to budget because then it doesn't derail your financial stability. It allows us to really think about those needs and wants so we can avoid those impulse purchases, which there's a lot of them when it comes to back to school.

Also, we're going to talk about it a little bit more later, but involving kiddos in the budgeting process, of course, age appropriate, depending on how old your kiddo is, but that really helps to teach the lessons about money management and responsibilities. But really having that plan for back-to-school expenses allows [00:01:00] you to stay within the plan you made, and then you could also, if you get ahead early, you can even spread out those costs over more than just one weekend or one month, if that's something that's better for your budget.

Jess Quindlen: So what are some typical expenses that families should anticipate for when they're preparing for back to school?

Emma Protsik: I mean, there's those essentials. So, the school supplies, you know, whether your teachers printing out a list of all the things you need to get for the school year. Clothing, shoes, as those kiddos are growing, they have some different sizes that they need to fit into. So those are definitely ones, but there are a lot of other costs too that come along with it and maybe even further into the school year.

So, are there going to be any activity costs? Are they going to be playing sports? They have to get that uniform for. Field trips are always fun, but typically have a little bit of a price attached to them. And then another expense too, is just lunches, whether that's making lunch or actual lunch money to buy it in the cafeteria. That's something you want to consider. And another expense you might run into is that before or after school daycare if the work schedules aren't syncing up with the schools, which typically seems [00:02:00] to be the case. And then another thing too with the kiddos, if there are medical appointments or physicals, the school's requiring them to get those things, especially for that sport participation. That might be an additional cost you need to consider as well.

Jess Quindlen: And I know at least in my daughter's school, they're not sending us a supply list, but we will be billed. So, the cost is still there, but I don't have to do the shopping. But still an expense, it'll just save me an hour. And then with lunches and breakfasts are now included for a lot of Colorado schools, which is fantastic. But snacks are not. So again, another thing to consider. Does your school provide it? And if not, you know, kids have to eat constantly throughout the day.

Bree Shellito: Well, and even if they don't, looking at kind of those thresholds to see if there's an application that can allow your kiddo to get free or reduced lunch. Huge.

Jess Quindlen: And frankly, will your child eat said free or reduced lunch? Do they have dietary restrictions? Are they an insanely picky child? I mean, I know for mine sometimes I'm going to be like, she's not going to eat that, so I will pack something. So, it's all over, but there's so much.

What steps should families take to create [00:03:00] an effective back to school budget with some of these definite no's? We have lists and we have other things, and then there's always those unknowns that may pop up or your kid might grow between July and August, which does happen.

Bree Shellito: Like anything else, having a plan, getting a list together. I know you mentioned the supply list, but even outside of that, what do we already have and what do we need? Do we have supplies already in the house that will work? I know sometimes they're a little bit more stringent on what that means and what is there. But if you already have some things they can use, that's great.

Thinking about the cost, creating your shopping list to know what you're going to need there. But setting a realistic budget, having an idea of those costs. It's not just like, “Oh, it'll be a couple of pencils.” Like that list is going to get kind of long. So thinking what it's going to look like, what you're going to need. Are you taking the kiddo with you? Are you not? That's all a matter of whether or not it's age appropriate but talking about the needs and wants. Especially if you're including the kiddo in some of the decisions, knowing what they're going to want when they go and understanding that this is how much we're going to spend.

So [00:04:00] we may have to choose some of the more basic folders if you want a character lunchbox because those things add up so quickly. But also leaving a buffer. Because depending on if they're going to a new school or even a new grade, oftentimes that means new friends. This could mean new birthday parties, new activities. The everlasting birthday parties. They're constantly happening. But seeking out the savings and knowing what's out there. There are tons of back to school sales and promotions. But comparing between prices and different stores, and also knowing that most of them price match. So, if you don't want to go to 15 different stores, having those kinds of circulars with you or even the online pulled up so that you can have them price match so you could just go to one place, is great.

But then also exploring some gently used items. What fits into the budget? What can we buy new? What would we like to maybe buy gently used? Sometimes, especially with those kiddos that are growing quickly, shoes, clothes, some of those pieces if we're trying to prioritize some of the supplies.

Jess Quindlen: And I guess just kind of building on that priority, are [00:05:00] there certain tips they can use to prioritize that spending?

Bree Shellito: Definitely values for your family. If something that you value are things like sports and physical fitness and some of those pieces, having those prioritized over some of the others. I mean, just talking with your kiddo too. What did they want to do and get into? I mean, activities, you know, Jess add up very quickly. So just setting that expectation ahead of time, avoids maybe some hurt feelings later. Like, okay, we're only going to do one sport this year versus the multiple and having them choose and working that out as a family. Which one are we going to prioritize, and which one do we see you enjoying more?

Jess Quindlen: So, we've done our budgeting. What are some tips for saving money on this back-to-school list we've made?

Bree Shellito: There's lots of different ways to save, definitely those coupons, those price matching, but also just thinking in terms of local opportunities, especially if this price list is getting a little out of hand and outside of your budget.

There's an amazing thing that happens here in Colorado Springs and tons of other opportunities across Colorado. There's a thing called the Backpack Bash and it's with over [00:06:00] 70 different organizations that are coming together to put this thing on. But what those kiddos get is a backpack and it's filled with brand new school supplies. You have to pre-register, which is the same thing with a lot of these. There are tons of back-to-school organizations that come together to provide some of these things and knowing that that's out there, they try to make it a really fun event and fun party. It's happening two days and you have to pre-register, but one is July 27th and the other is August 3rd. So, if you just look up Backpack Bash, you'll see that. But there's lots of those organizations all across Colorado and certainly nationwide. So just knowing that there's no shame in that, these are expensive times, and these organizations are designated to put together some of these things and help out families.

So, knowing that that's the case again, with the expectations with kiddos, just knowing we only have so many. So, if you're prioritizing the character backpack or lunchbox, the other supplies are maybe not going to be as cool and that's okay. But also, just consider shopping at the end. If you have a [00:07:00] little bit of discretionary spending at the end of the season, because that's what all of these supplies are going to drop prices quick. If you can think ahead to the following year and save a little bit too, in order to do that, it'll save you a ton for the 2025 and 2026 school year.

Jess Quindlen: I'll definitely be sure we link the Backpack Bash here in Springs and I'll see about some others in other areas of Colorado Springs, so that's great.

So why is it important to involve children in this budgeting process?

Emma Protsik: Our behaviors around money, we've talked about a couple of times, I know, but they're formed at a really young age. So, seeing how you're spending your money is going to affect your children later down the line. So, getting them involved early, having them understand those basic concepts. It's going to really set them up for success. It's just a life skill that we all want to have. We all maybe wish that we were taught that way when we were younger. Again, just going back to the habits of seeing you do.

Go over a budget, right? Set the budget, make those decisions in the store, then that's going to help them with their habits later down the [00:08:00] line. I also think it adds this level of transparency and that helps the family unit overall. So, the trust that's created from that, again, you can have maybe healthier conversations around it. Everyone understands where it's at. So maybe even, for other conversations around money later down the line, it's a little bit more understanding from both sides of things.

It's also just going to help them with their decision-making process. Again, looking at those needs and wants, it can be good to do that. And then you can make it a little bit fun getting them involved with it. Try to set the stage, get those activities, make it fun with the different food and snacks and all of that. So, you can make it as kind of like a bonding experience as well.

Bree Shellito: We found a couple games that you can even play depending on what age your kiddos are. You can turn it into a fun scavenger hunt, you know, these are the supplies we need. Here's your list. Here's your budget. If they can understand those dollars, then it's easier. But of course, if they can't, then working with them, setting up things like card games, or even a this or that game. Like, is this a need or is this a want when we're talking about? And it isn't just about school supplies, because sometimes that can be [00:09:00] complicated, but showing that. And also, there's some great tools out there. There's some great financial books, but also just making up fun stories about, people in the stories and the fairy tales, making financial decisions. Just making it a part of what they do is going to make money, second nature to them.

And if you're listening to this podcast, I'm so glad because that means you're interested in it. Let's keep the conversation going to get them interested too.

Jess Quindlen: All right. So how can parents estimate the back-to-school expenses if they're unsure of the costs?

Emma Protsik: Create lists. Again, whether your school provides one or just understanding the subjects and the different things they have coming up. Again, back to prioritizing those essentials.

So really make a decision. What is most important to you now. I remember back to school shopping way back when for me. With my mom we were in Target, and I was picking out the notebooks and of course I want the One Direction notebook, all the folders and stuff. But you know, those do have a little extra cost, and I remember my mom asking me “Would you rather have a nicer backpack or a nicer folder?” [00:10:00] And I was like, okay, what matters most to me? And it was the backpack. But I remember that conversation and that I think has kind of helped me in making some of those decisions with prioritizing.

So again, the this or that game that Bree was talking about, and then look ahead before you go shopping. So maybe buying stuff online might be a little bit more affordable. Maybe you can get some better coupons that way. But just do your research, make sure you're understanding it. Don't just assume those things. Especially if you're doing that back-to-school shopping closer to school starting again, you might see a little bit of price increases. So, what you saw beginning of summer might be a little bit different than right now.

Bree Shellito: Well, and if you can team up with other families as well, some of those things are bulk items, things that you have to buy for the classroom, like, cleaning wipes or tissues. So, going in together or buying things that you're already going to be buying for your house and having it there versus buying the one pack can save a lot of money. So, thinking in terms of some of the things that you'll also use can be helpful.

Jess Quindlen: What should families do if they find themselves going over budget but they really can't sacrifice much because they [00:11:00] need to get what they need to get?

Bree Shellito: Of course. Yeah. And that's what it comes down to. So, a reevaluation is sometimes what happens, maybe in the beginning. We took all the time we needed to plan. We thought about what our priorities were, but it comes to reevaluating, prioritizing what's important? What's left? What do we absolutely have to buy?

Also, we mentioned some of the local resources, but communicating directly with the teacher can be huge. Sometimes they also have some resources, so just feeling no shame at all in that this is an expensive time. So just knowing that there are resources that are out there. If it's not this teacher, the school, whatever it works there for you. There are also cost-saving alternatives. Things like dollar stores can be huge for school supplies. Sometimes it's less in the pack. So, let's say if we're going for crayons or pencils, maybe it's eight instead of 16, but it's a dollar instead of three or four dollars.

So just knowing what resources are out there and definitely look for those school supply drives. They are everywhere. I can think of multiple off the top of my head other than the one I mentioned just here. So, knowing that those are available as a resource [00:12:00] to at least help kind of fill that gap for what you need.

Jess Quindlen: Well, that brings us to the end of our show. Bree, Emma, thanks so much for being here. It was wonderful having you.

Emma Protsik: Thanks, Jess.

Jess Quindlen: Thank you for listening to Sound Cents from Ent Credit Union. Be sure to follow our podcast as well as rate and review us. I'm Jessica Quindlen. I will see you in two weeks, same time, same place.